I'm not going to be in a big hurry. Even though I qualify for a full discount update I want to play with my 3Gs with the new 4.0 OS for a while before deciding on whether I should buy the new phone. I could care less about a front face camera.
If they did the second option I would be mad.
I like the ability to pre-order online, and pick it up in the store. In the past only At&t has done this (to my knowledge.)
Apple allows you to "schedule" "reserve" a phone, but your not guaranteed you will get it when you arrive at the store.