To be honest, the first option is very appealing. If I'm given the equipment and spells and such that I had when I fought said bosses, the Final Fantasy bosses are gonna get a severe kick in the butt 
More to the point, when you said that the physical stature and such stay the same, are you saying permenantly, or would we gain strength over time for successful wins? (ie, leveling up after a boss fight ala RPG-style gaming)
More to the point, when you said that the physical stature and such stay the same, are you saying permenantly, or would we gain strength over time for successful wins? (ie, leveling up after a boss fight ala RPG-style gaming)