Option 2.
Anyone confused by the number of entries increasing by 50% is likely already confused by the existing number of entries. They cannot be helped without menu reorganization.
New players will cycle through all the options saying "Wow... that's a lot of options." It will take them several costumes before they feel comfortable with all the options you have given them, regardless of adding new ones.
Changing existing textures can and will destroy some existing character designs and concepts. I've already lost costumes in the past because I went to throw on a new piece of clothing and saved before noticing that a top/boot/pattern had been removed from the game.
