Despite of 2), which would even have benefits for the Cut/Paste approach (noted), I cannot see any advantage in 1). The effort to select an existing unit or create a new one is pretty much the same as opening that unit or create it with the build-in possibilities.
The difference boils down to have a new functionality for this new MOVE operation, which would most likely lack a standard shortcut (which are pretty sparse in a current IDE) and thus had to be triggered from a context menu (two clicks).
IMHO it would end up in a new feature needing significant effort to implement while of vanishing benefit for most users.