Option three. McCain really was the best candidate the GOP had. Considering how badly he was ravaged in the campaign, imagine what would have happened to Romney or Huckabee.
That is clearly the case IMO. Mittens was too damaged to profit from the financial collapse even though he was and is good with money matters. The problem is that he is a pathological liar with a tin political ear. I know that sounds harsh, but it is my considered judgment of the man. Huckabee I can't be objective about (I find him clownish and don't agree with him on most issues), but who voted for Obama that would have voted for Huckabee? Does any such person exist?