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Netflix has a lot of Atmos content, so if the TV’s app can pass Atmos, you’ll benefit from eARC.

You should be able to use the TV speakers with either connection setup. If the optical cable works, you might just as well stick with that.

Just to clarify, eARC can pass HD audio and Atmos from the apps in the TV. Optical can't. The thing is, can any of the apps send Atmos (no streaming has HD audio) and do you use them? I got rid of cable over 15 years ago and have been using the TV OTA tuner since then for TV. At that time...

ARC can have some benefits when using the TV’s internal apps. With OTA it makes no difference. Sometimes ARC can be glitchy.

Definitely #1. The receiver is the switching center of the system, not the TV. To get audio from OTA back to the receiver, you can use the ARC feature with the correct hdmi input on the TV. You can alternatively use an optical cable from the TV to the receiver.