I’ve done both in my career. I’ve shown design options and let the client create a Frankenstein. And, I’ve shown the client what they need and helped them understand why they need it. Option #2 is always more successful for everyone involved.
More-so: I never design something based on presentation option #1, so why would I ever present that way? Showing clients that I understand their problems and helping them understand the solutions I’ve come up with leads to a more successful project, and makes me more valuable as a problem solver. Ultimately, I’m not a designer. I’m a problem solver.