Option 1 isn't viable though - see the UK, Israel, and Singapore for the latest news. They are highly vaccinated, 85% of total population (meaning over 90%+ of the eligible), and the hospital systems are still straining to capacity, resulting in more restrictions and the current scramble for boosters.

I think we have to face the reality that vaccines won't stop this, and the only way out is after this burns through everyone. Vaccines can help reduce personal impact on severity but doesn't seem to be helping the hospital load problem.