[carpeperdiem]

Yes, scenario 2 is what I do... I have re-invented the ez-upsell template, so that the continue shopping/checkout now buttons are "mine" (with some text that's appropriate to my store). The upsell items have thumbnails and short descriptions.

This requires ONE EXTRA CLICK from the customer -- "are you ready to checkout now" -- we hijacked their experience with ez-up, but I think the process really helps the customer:

1. add to cart
2. ez-up (add an upsell item/continue chopping/proceed to checkout)
3. cart page (summary of items in cart) - "checkout now"
4. Checkout One

In my opinion, scenario 1 risks losing the customer, since once they choose "ok, let's pay and get out of here", many ecom experts say "take the money as fast as you can".

Only you know your customer - so my $.02 doesn't really matter!