The FO has some options in which approach they take, but I think it's pretty obvious they don't have the money or the assets place to fill all the holes. This is likely going to lead to more frustration from Jays fans and this board.
Go with Approach #1 as you suggested above and the rotation may be too thin. If we do suffer some injuries, we could be in trouble. Declines from the big 3 guys may also leave us without the talent we need at the top of the rotation.
Go with Approach #2, which would be 1 big bat, 1 SPer and Bullpen and they run the risk of failing to address the lack of power and offense for a 3rd straight season. Relying on guys like Bo, Kirk, Springer - and some key Buffalo players to produce more offensively.
Each approach will come with it's own probability of failure. I suspect the FO will have their preferred approach, but will keep both open and have to do their best to read the market and take the approach that gives us the most bang for our buck.