First, kudos for the following:
Technology often mystifies the elderly – soldier on good sir, you’ll overcome those gremlins yet!
Now to the matter at hand: Pie …
There can be no write answer (what?) here. Why? Because it really depends on the developmental choices you make in writing the game, that is why. (Grumbling in the background is NOT allowed mister).
What do I mean by “developmental choices?” I mean, as the developer, you’ll need to pick an approach and to be successful, you are going to need consistency in that approach. Your audience will, in general, accept whichever approach you take with the dialogue unless you keep breaking the fourth wall and jar them from accepting your story-game.
If you chose option three as your general approach, you are tailoring your development towards the meta gaming crowd, just as option one caters to the role players… the second option usually either satisfies everyone or no one … depending on everything from writing skill of the author to editing skills of the editor.
Yet, the truth of the matter is simple: You determine the nature of your game from the get go and then you develop it with that pillar of dialogue throughout your development plan as your guide. @The_Black_Reaper is really insightful in saying:
Yet, it is not only marketing but consistency … recent Bioware games show a lack of consistency (hello ME: Andromeda, glad you were summoned). If Bioware stuck with what they were masters at, not only would they have received more passes by their audience for tech issues such as poor character animations, but they would not be experiencing the disconnect that many loyal fans experienced.
So, man-up and design your game; make the choice based on what your goal is for the protagonist.
If you crowd-source the design decision, you are rolling the dice, a loaded pair of dice that will be unpredictable and may not align with the rest of your design pillars for your developmental plan. (You do have a developmental plan in place, right)
Everyone who celebrates American Thanksgiving … have a wonderful day.