From a business perspective, 1 is bad. They probably figured that taking the codes out would be the better option for both them and consumers
And Consumers? I think consumers would be better served buying the game elsewhere and getting the onlive code with purchase as intended. I don't think selling consumers an incomplete product as new when everyone else has it new and in complete condition is a benefit to them.
99gamers.com-Going down in flames after discounting their currency! Kickstarter "Game Developer"!