Hitscan vs "Ballistic" bullet simulation

http://majatek.deviantart.com/art/hitscan-vs-ballistic-bullet-simulation-339439118

“Game mechanics is where I’m at. I’m actually in the process of making a game, top down shooter if it’s not obvious enough, but you’re not getting any more clues from me for now. ;D
This was a little self research to hopefully make this project take a little more skill (and as a result becomes more competitive) to play once finished.”

Basically I’m just jotting ideas down, I wonder what you guys think about the mechanics of the third idea if possible, thank you.