- Face ID isn't magically going under the display. This is made up nonsense. What actually happens is that over time Apple is able to miniaturize mature technology (as is common). By doing so, the Face ID components take up less space, therefor the notch can change size and shape, or no longer be a "notch" at all, and more of an island.
- The pill + hole design sounds like the most likely, as its exactly as weird and bold as Apple likes to be, and it looks different from every other, which we've seen is very important to Apple, and probably is important from an exposure marketing standpoint.
- The rumors about under display Touch ID go back 6 years and they were nonsense then and they are nonsense now. Analysts were absolutely certain that iPhone X would have Touch ID under the display, and Apple commented after iPhone X's release that they never even considered doing that. Face ID is superior to Touch ID, and it's simply not going back.