I would say #2, since it encourages exploration.
However, I would like to state that I find games without manual save points really annoying, since my computer is not very stable, and my electricity supplier even less so. It always seems that whenever I have made the most progress, there is a power cut, or power surge, or some other disaster. Not fun D:
It really depends how far save points are away from each other. In some games I own (no names named) it is a five minute walk/fifteen minute fight between checkpoints (savepoints were even worse), and there is no manual save.
I grew tired of these games really quickly, as I could not simply pick them up whenever I wanted, but had to plan ahead to make sure I did not have any plans for the night, and had enough charge in my UPS to last me to the next savepoint in case of a power cut.