It's hard to understand what you mean without a
photo or 2, but here goes
Option 1 would be the conventional way to do things
Cam cleat on a block would
work on a
small boat, but would probably be better if you had the cleat on the
deck, rather than integral with the block. (especially if you had a 2:1
purchase on the headsail - this set up is v. common on sports boats).
But if you have winches already why change the setup? Also, if the
rope is on the winch, why do you need a camcleat between it and the block?
I guess the real question is why do you need to change?
If it's because the blocks are shot - replace the blocks
If it is because the car is shot - replace the car, or go for an integrated car/block