Wow, talk about a lot of responses.
First, I just want to say, my current setup is set up that way because that's how the previous owner did it.
While I'm inclined to try it without the stopper knot, I honestly don't think either option would prevent dropping the sail rapidly. Remove coiled line from cleat, uncleat and yank the sail down. Option 2 specifically would come down just as fast as if it wasn't through the center of the cleat.
Option 1 has the risk of catching a knuckle or coil in the line. I can see where that could be a problem.
I could very well be using the wrong line. I have no idea the type of line, but it appears to be some sort of double braid about 8mm in thickness. I don't know where it came from, or how old it is. It feels good in the hand, soft, supple.
It may very well have too much stretch.
However, when the sail is fully raised, there is only 3'ish of that line being used. That halyard is almost all cable, with a the tiniest bit of line in use when cleated.
As far as the length? Is there some sort of rule of thumb on how long it should be, assuming it's cleated at the mast?
Now, I'm wondering if this is how the PO did it or if maybe the marina did this when they removed the mast from the boat to store it for the winter.
All of our halyards were done this way.