I have been doing weddings for just over a year now and use and love my 7D, EXCEPT in low light. I'm not completely satisfied with the IQ of the 7D because I'm a pixel-peeper and hate noise. I also find it not quite as sharp, even at iso 100, as I would like it to be. Like many have said before, if it were a FF camera, it would be the perfect camera. The recent rumors make it seem as if the new 5DMKIII will be just that, a full frame 7D. However, I can't base my decisions on rumors.
I am looking at going full frame and gain a bit better low light performance as well as sharper images overall. I have the 7D and use a tamron 17-50 2.8 lens and love it. I also have the Canon 70-200 2.8 IS lens. I will sell all of the above to make my purchase. I figure I can buy the 70-200 again in the future and a 24-70 ish zoom would be a must for weddings.
Let me know you 2 cents. Thanks.
Even though I voted for your option 2 I'm not convinced that you are on the right track. Here's why:
I personally wouldn't shoot something as important as a wedding without a backup. And where I am right now I don't even feel that I would want to shoot weddings at all because in my opinion you have to be really well equipped for that - both from a skill set perspective as well as far as gear is concerned. And I'd say that is true no matter if you do it for free, for a little fee or for $10,000. But that's my personal stance on it and I don't have to live on photography. The 7D is a very fine camera and should be well suited for what you are trying to do. Only I'd bring a second one and maybe a bit more lens choices and certainly enough light unless you insist of being an available light person - which is then something you have to make clear to your clients and may require indeed a change in your setup.
And let me ask you this: You are a self-proclaimed pixel peeper and you hate noise. What about your clients? Do they complain about "noise" or any grain? What do you do for post-processing? This is all a matter of taste and changing expectations but I personally find myself adding artificial film grain often in low light situations rather than trying remove noise from my 5DII files. I don't pixel peep usually and "hate" the plastic look of high ISO capabilities and NR software. But that's me. Haven't gotten any complaints from my clients about that yet.
I would recommend to not rush anything. If you are getting paid for your wedding jobs see if you can maybe rent a second body and perhaps try out a few lenses that way. And if you have a few bucks left maybe consider a fast prime in your favorite focal range. In the end these are just tools that you'll need to build your business and what counts most are happy couples and in-laws and so forth not if you shot with a 7D or 5DX or whatever.