Settling for less happens even in a strict non-P2W game. The option was included for completeness. They are at a disadvantage to everyone.
Option #1 is the fun option. Your definition is subjective. I counter that its a disadvantage because it doesn't provide the same game experience. Some are content with just the rewards, some are would like the real game experience but are settling for less.
Option #2 and #3 are effectively the same. Some find its easier to earn real life money, some find its easier to earn gold in game. Spending time in game earning gold is not any different than spending time gaining money in real life. You're also wrong about how people earn gold in game. Some people are fantastically wealthy in game without ever spending a penny in real life. Personally its easier for me to earn gold in game than real life money.
In any event, if you can obtain the exact same rewards through multiple means while having no power advantage the game isn't P2W.
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That's certainly part of it. The real argument does paying money give you an actual statistical advantage? The answer is no. It doesn't even give you much of lead in decorations. Gear is still gated and somewhat random to obtain.
Anything obtainable in game is also obtainable by other means.