I was wondering how you faired with this? Checking your site it looks like you went with Option 1?
I'm doing something similar on a local development machine for our hobby site: http://www.tomaxcars.com
I've implemented Al Nyveldt's, PageStyle to display Recent Posts & Latest Post - like it appears that you have.
I need some fixed content also (like your twitter updates div) - could you post a snippet of your default.aspx to see how you are achieving this?
I've merged my master.cs into the default.aspx, and set the various items to display - but i'm getting error:
"Content controls have to be top-level controls in a content page or a nested master page that references a master page" - I must need to register some controls etc. for the Appcode/Controls?