I would do option 3, both as a user and if I were to make my own service. I’d let a dedicated image service do it. I’m not worried about IP leakage and if I am I can use a VPN. If I want to be that concerned about it, I think the responsibility is on me, not on the service unless they promise that level of privacy.

I vote for what gives the best experience for users and makes running the service easier and cost effectivem