I like the second narration since it's closest to being like reading a book. The first is like "choose your own adventure" and the third is kind of distant.
I must agree with that...
The first goes better with a first-person adventure, and having no narration is no fun.
The second option is definatly the best... I hope KQ9 takes it ::)
I think the main purpose of that kind of ...."repetitive" narration was mostly so that the description would point out something you might miss just by looking quickly. There were plenty of times in KQ games when I would never have seen something if the narration hadn't specifically mentioned it!
I do like that we're adding emotions into and all, though. It does help, in my opinion, to keep the main ideas in the minds of whoever's going to be playing.
I LOVED MONKEY ISLAND! ::)
So... what kind of narration are you planning for KQ9?