The sanctity of "competitive pokemon" has already been compromised in later generations, so no matter how strongly I may want to side with a purer game that does not clause BP or anything else that does not have to be claused (like Lati@s in Gen III or Latios in IV), a game that clauses BP is a more competitive game, and that is what our community is supposed to strive for. A player shouldn't have to worry about a gimmick like BP when creating his team for an Advance Tour battle, because BP teams utilized by anyone with even a moderate amount of skill are going to beat "normal teams" by someone of the same skill level considerably more often than not, and there were, are, and will always be no two ways about that in Advance play.
Option 3 is a less convoluted and arbitrary way of clausing Baton Pass than Option 2, but both are better than 1.
Baton Pass was honestly rather underwhelming, but I do feel that it does have a rather negative impact on the metagame, as I was running a team that was very well prepared for it, and I do feel that the level of preparation required goes beyond simply "a phazer". Thus, Smeargle Ingrain ban first, to make it so that large amounts of advance preparation aren't needed to beat Baton Pass, then no changes, and we'll just let the metagame conform around Baton Pass a bit in the tours, and finally, limiting the use of the move.