_Arthas_
I'd go for number 2, continue as is, but add some growth, bits of character development which could explain why he makes some choices, but also can explain how the choices could affect his character going forward. Also, relationships can help move it forward cause some relationships can be what drives a person forward, as well as can shape they personality. But personally, my opinion would be not to limit yourself. I love how your story's going so far. You're doing a great job. Not knowing what's going to happen will make it all the more interesting to read
I currently like where this is going and how you've written the story so far. Hence, I would prefer you to continue, but at the same time, I am okay with a rewrite as I have seen your writing, so regardless, I'm sure it will be a good read. The MC is not actually overpowered. The only thing that truly protects him is that they do not know where his host body is. Even if they defeat his creation, at most he loses some essence points. So, I see no need to nerf him. You can set up multiple identities for him and have a set spell each identity can use. If you have to nerf him, regardless of what is decided, you still have my read/vote.