As i before said prizes must be really different! And so will be the prestige of the 2 trophy (like in IRL uefa/europa league and CL)!! for the 2nd question: there's a page called cup format, that explain the rules.
What about option 4 then??
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Old cup was easy, being on the top of the server. New cup is a challenge, for some still to hard, but a bit to far a way from real life. As I have heard before Nordeus want a lot of things to be like the real life. Makes me think they have to tweak the new cup system a bit.
This new cup is really challenging and pretty hard. Lowest quality level between them, I succeeded into winning the first match 3-1agg with a bit of luck (In fact I used A LOT of luck =D) and I guess I won't be that lucky versus next teams.