I'm with Kong, half way between 1 and 2, but I voted 2.
I bottle everything ATM, with 330ml LCB stubbies, and yes its a pain, but I'm kinda used to it now.
No kegs 'coz of space probs, but I'm thinking about playing around with a party style setup, eg: Sodastream or small extinguisher CO2 and a Pressure Sprayer bottle.
I think I saw some decent sized bottles at Bunnings ages ago, like 8 or 9 litres? hmmm.