I should have worded the question differently. More the future of search rather than a specific update.
Moz shows that to our root domain we have 34 domains and 4595 total links. We have been working on content for 6 months and i'm pretty happy with the results. We have a content creation system and the quality just keeps getting better so its all ticking along nicely. I could put more time/money but I feel we are ahead of the pack by a mile in our market. I think Point 2) of your solutions is the way to go as I feel we are just lagging way way behind links wise. So much so that our content just is not bubbling up.
Many of our competitors have 1000's of domains (lots of crap ones I may add) and i think we are just too far behind to ignore it and do the "build it they will come" method.
i'm a massive fan of content driven SEO, however i do wonder where the line should be drawn and where an amount of link building and network making needs to be done to get the content out.