The most sensible thing to do is what hinders development the least and gets the final product here faster. Therefore 3.
Sounds like a plan! I'm fine with any of them. DRM-Free sounds pretty cool, but I would definitely not mind having a Steam version either. Both sound awesome!
I like option 3. If people are supposed to be beta testing it and reporting bugs, it just makes sense to use steam to address those bugs faster.
I'm saying 3, though I understand that the people who really really only want the DRM-free version are being neglected for a while. Updating on 2 fronts frequently is a pain, though I think option 2 might work as well.
It's sad to hear that some people aren't able to use Steam, but try to think of the developers. All software developers run from complex deployments/updates like cats run from water. They're asking us out of courtesy. But we all know that they really really don't want us to ask for option 1 (and maybe option 2) even if they'd honour our wishes. It's like asking a marathon runner to slow down for the camera man. I vote for option 3. Even if something happens and I'm not able to use Steam anymore, the game must go on.
Option 1. The game will have plenty to do, so infrequent but substantial updates are fine, options 2 and 3 are unacceptable. People who don't use Steam shouldn't be punished and forced to wait even longer for the game.
Why does using Steam bother you so much? I am really just looking for some rational to your assertion.
It seems like the Steam-first option would lead to the lowest amount of distraction from developing the main game, which is IMHO the most important thing. Everyone gets a finished product sooner that way (including Steam users who want to wait for the game to be polished and stable, i.e. released, before playing it!). I vote Steam for early Beta testing and DRM-free later!