If you were going to use the Dakota frame, option 2 would be the best choice.

I think it would be a lot easier to add the power steering and disc brakes to what you already have. There has got to be a disc brake, power steering equipped, 66-72 Mopar C body sitting around, close to you, that can donate the parts you need (and probably someone that would love to see those parts get used). There are also lots of hot rodders that would love to get their hands on that Dakota frame, me included (unfortunately, I'm not close to you).

I think I would cruise through the C body section here (maybe post a want ad) and see what might be available. Gene