I've just completed a swap of the LCD, as in my option 1 above. All went well, with the most fiddly part being persuading the small plug on the LCD to come out of its socket on the back of the donor cluster, without damaging it. It wasn't too easy to then plug it in to the cluster from my car. My wife's crochet hook proved very useful in pulling it out! A mileage popped up which looks like the car was counting miles during the period the LCD wasn't working. Just got to hope that my "used" replacement LCD keeps working.
The route that I have take was the cheapest. Sending it away to be done gets you a warranty but is significantly more expensive and the car will be out of action whilst the unit is sent away. I couldn't find a UK based supplier for the LCD and import regulations make it non cost effective to buy on the Continent.
Asking a few question (about the Punto) it looks like the storage of mileage data is on the odometer, i.e. within the cluster. The Body Controller Unit apparently does not store mileage data. So if this is correct, when a replacement cluster is put into a vehicle it will only show the mileage record that it carries within it.
Does this make sense to Forum members?