Both options are perfectly reasonable from my point of view, but voted for #1.
If that's how it's going to go, postponing the disc manufacturing phase for several months might be worth considering. See what kind of feedback you get upon release, and if the game looks like it still needs a lot of patching, wait until you have a relatively bug-free version, and then print *that* on discs (instead of the still somewhat buggy day 1 version). That's what InXile did with Wasteland 2 DRM-free discs: they have put six patches out in six months, and those who requested the DRM-free discs will get a stable version, intead of one that needs patching anyway. The waiting period is longer, sure, but in the long run it's better for the owners of the discs.