1 is probably the best approach, and also would be *kinda* like U of Michigan; no way the academics equate (outside of Newhouse) but make it crazy cheap in state and make it really expensive out-of-state.
You'll still draw the kids who want to be the next Tirico or Eagle, which you were gonna do anyway.
About 8 years ago Syracuse was at a crossroads. Either
1) Become the de facto big state school for NY and become affordable for at least in state residents or
2) Become a “premium luxury” institution that thinks families equate price tag with quality
They chose two and still have time to revector and pick 1