I agree. I voted for options 1, 2, and 4.
With regard to the aforementioned, I am concerned that agreeing to a settlement would set a bad precedent and embolden other litigious actors to file suit. I doubt this will be the last instance when ENS faces scrutiny or legal risk.
I recommend that Labs prepare by developing a strategy to deal with similar situations in the future. Litigation is not only a burden but also a distraction that diverts energy and resources away from pursuing worthwhile goals.
Optimally, they should promptly communicate this strategy, to the extent they deem necessary, while ensuring it does not prove disadvantageous to their approach.