Somebody made a 5 fps movie with a Canon 20D camera and its "motor drive" and strung together the resulting JPEG files, so I think your idea '1' would be great.
I just made flipbooks to send out as Christmas cards and only had one real desire: On the Cover Page and Back Page, it would be nice to be able to have different fonts, or at least different sizes. I wanted to say "Merry Christmas" with a large font on the back page and then have my blog URL is a small font.
The software seemed very stable. One change that I would ask for is on the Movie Control pane. There are the 'Play', 'Stop', 'Reverse', 'Forward', and 'Record' buttons. The forward and revers buttons go all the way to the beginning or end of the movie. I think it would be much more useful to have them single step through the frames. You can use the play, stop, and clicking on the time-line to get close, but it is hard to nail a single frame right now.
The Recent Projects menu also has a somewhat odd behavior. If you are working on a project and do a Save As, that new project does not show up in the Recent Projects menu. So, if you close the program, come back at a later date, you have to find the project via the Open command, then it shows up in the Recent Projects.
You should be getting kickbacks from Avery and Epson. I printed 480 "business cards" and almost went through an entire black ink cartridge...