Hi Buck,
Your suggestion #2 was added to the cart in version 4.1. In the buynow settings under product listing setup section we added a new check box titled "Display Category Description". When "Display Category Description" is checked the category description is displayed at the top of the product listing page. The category description is displayed only when the category is clicked in the category menu. In the Category Setup screen - Added "category description" field. Rich text editor can be used to manage "catgegory description" field. I will suggestion #1 to the feature request list.
Thanks for your suggestions!
Dave