Option 1. is the best in my opinion.
The Breville grinder does not grind fine enough for espresso. There is a simple modification that can be done which improves the grind but I do not have personal experience with this modification and recently read a post where another member found it was still not fine enough.
I have no experience with the DeLonghi but believe it is also not up to make espresso.
I started my coffee journey with a similar set up although I bought everything second hand and actually made some money when I re-sold soon after.
You will need to get yourself an unpressurised basket or use a Dremmel (or other tool) to take off the bottom floor of the pressurised baskets the machine comes with.