People will choose option 2: Operate the drone stock out of box for all your recreational *and* commercial needs and not a single NEO will be entered into the FAA database because no one plans to attach an RID module to it, not even for commercial work. Not for youtubers and their businesses and their paid channels and not for pilots who fly around the tight exterior of properties.
This is all confusing and that's what happens when the rules don't make sense or they are put into place for the not the right reasons. Despite any category listing, no one will be able to legally fly sustained flight with a NEO over large uninvolved crowds. At some people you will be challenge and if so, what's the use? Not going to be much different than flying a MINI if you have explain or break out paperwork or use google on your phone to prove it. A thousand people in the group and two or three people won't like it and the organizer won't like it either which means it's a waste of time because anybody could have approached the situation with *any* drone beforehand, you didn't need NEO to do that. Flying a NEO over a concert these days and if they don't recognize, they will stop the concert and at that point, you lose. No one is going to say "Oh that's a category 1 NEO, it's ok, keep playing." Adding a NEO to the drone mix doesn't change anything you can't convince a few people that it won't hurt anyone and nobody will buy that. 150g and 250g and a cage means nothing to ordinary people.
This is such a waste. The NEO is for your own personal use in your own little space. If you stand outside the fence on the public sidewalk and you launch your NEO over and onto the youth soccer field during a game and you fly over the bench and over the spectators and you do a few laps up and down the field during play and you hover over the crowd, you can expect to be told to stop it. And there won't be any "they'll soon get use to it" because if they did, the MINI and the rest of the toy drones would have done it by now. NEO is too annoying to be safe, even the sound it emits comes across as threatening.