I know I've commented a lot, but upon reading this again, I am so glad you're using the original music. It completely changes the atmosphere. Please contact me if you need any help at all with textures, as that is what I do. In SMP, I really like option A, so here are my suggestions:
One:
Possibly have some quests that make other quests impossible (Example: killing or stealing from another NPC) This allows the player to have a wider range of options and more immersive gameplay, in which decision making is up to you.
Two:
Maybe make certain areas (towns, dungeons, landmarks) No-PVP zones. This would make gameplay much more enjoyable for anyone who wants a bit of adventure to go along with the survival experience.
Thanks for your time! I hope you take these into consideration.