Yeah, with option one you need to add quite a few points. You only get elevations at the points on the track.
What is needed is a way to automatically generate points at a regular interval, as you draw. It would not be hard to add, but most people use the draw tool to trace routes and would prefer fewer points, not more. An option for this kind of drawing, or perhaps in the spline dialog simply an add intermediate points function. I would find this useful so I'll add it to the list.