Number 3 for me.
If they ever were to rework it completely, I’d prefer them to do it like in one of their previous concept art showed in the Scalecommander thread Feedback: Scalecommander in The War Within - #38 by Sithalos-malganis
This would give players more freedom and control over where you breathe. Depending on how they do it, it could also remove a lot of the clunkyness from the line targeting it currently has.