Do not mess with the code
With all respect you deserve. Devcoin is Free/Libre Open Source Software, anyone can mess with the code and do whatever they want.
That said, I announced the hard fork already, no way back.
Deflation is a good move I think. The issue is.. what happens with existing coins if this is hard forked/redone?
Indeed! If we just let Devcoin die, its remaining value is lost forever. I believe in the power of the existing community, otherwise I would start a new coin project rather than hardforking.
To answer your question let me comment on what @Shattienator just said:
For option 1 this will be just a new coin. In this case it should be a ICO on any notable f. Basically it will give all the options you have mentioned in option 2.
In reality - the new coin with the old Idea is the only option that can succeed at the ICO funding. With new protocol, new features, new RDS and IRS in place. Basically we can start with new whitepaper and get and strategy for ICO. But do we need the old Devcoin with all these "premined" (from ICO point of view) coins?
YES! We don't need to stick to the old source code, we can fork another coin that is better suited for the purpose of Devcoin and the needs of the existing market. We keep the name: Devcoin, because everyone holding the old Devcoin will have a chance to get the new Devcoin through DRS, which should have a good RDS and IRS.
This is what will happen in this proposed scenario:
1. new Devcoin releases with a new blockchain (new genesis block)
2. old Devcoin stays alive
3. Devcoin Renewal Service launches to convert old to new
4. Market switches from old Devcoin to new Devcoin progressively
We should not worry about the old blockchain and coins, because the market will bet for the new Devcoin IF we make it a better option. I strongly believe that Coingather, the only Exchange willing to support Devcoin will contribute to the success of this hardfork.
Regarding ICO / Airdrop and the like. There is enough people holding Devcoin already, no need to make more marketing.
And... there is something after the hardfork: Devtome needs love! and we could build more assets that will contribute economic value to the new Devcoin market. That creation of value should be measured and considered into IRS.