On the surface, it appears to be (1): Reed in explaining MP's appointment stressed his commitment to fast, attacking, high-intensity football which would suggest that Reed was also labouring under an illusion which, in turn, raises questions. Of course Reed might just be bullsh*tting.
What is strange is that there is absolutely nothing in MP's trackrecord to suggest he wants to play football in this way. Admittedly managing a minnow in Spain requires a bit of pragmatism -you're going to get destroyed if you are too gung-ho; that said when you hold up Benitez and Van Gaal as inspirations about how the game should be played, as MP does, one can't help but conclude that MP is philosophically inclined in this way too.