I don't see the difference between option 1 and 2. Isn't a PC stronger or weaker than another PC because an option he chose is stronger or weaker?
And PCs vs. Challenges has no bearing on balance, to me. DMs are completely in control of the challenges, and can make them stronger or weaker as needed.
And PCs vs. Challenges has no bearing on balance, to me. DMs are completely in control of the challenges, and can make them stronger or weaker as needed.