Happy to report that this feature is planned and will be available soon!
We're inclined to the second one. It's more forgiving. If you suddenly remember that you shouldn't have deleted the document 5 days ago, the Gmail method doesn't help... the damage is done.
We're picturing a simple pop up where all deleted folders or documents will be listed out, with their names, deletion date, and a "Restore" button. Pressing the "Restore" button will send this file to your root folder, because we currently do not track where a file was after it's deleted. Not sure if not restoring to the exact original location is a probably, as you probably only restore files every once few days.
How does that sound? Thanks!