Number 1.

I have to agree I don't see any drawbacks to removing collision entirely, especially since I've seen no objections with actual examples of why it would be a bad idea. Besides if immersion is such a concern, then remove collision only in the most congested areas -- Jeuno and maybe Whitegate at the least -- and keep it everywhere else. This is basically a quality of life adjustment anyway and shouldn't require months of deliberations.

And on that note, what's the problem with adding this 30 second adjustment and then, if it doesn't work or a better idea comes along, adjusting it again? Why the need to postpone it entirely if you have other ideas and they're simply not ready yet? If there is a part of the player base that genuinely doesn't want this for whatever fathomable reason, then code in a toggle into the config if such a thing is possible. Both sides win.