Voted for the 4th option but with "add to the current lineup" in mind rather than ditching members.
Open the song submissions up to more collaborators. That may be a difficult proposition as they'd probably want to play their own compositions on the album (see what happened with Alain) but I think if Morrissey officially announced the next album as his last and "may the best demos win" we'd see a marked leap in musical quality.
And I still think a return to the Street production of the late 80s, with the gravitas of Morrissey 2013, would be excellent.