I would choose the raising patio/deck option. This will allow you to have the size patio you'd like and you could adorn the borders of your patio with container gardening, small shrubs, colorful flowers, and/or even a water feature.
The only drawback is possible unwanted critters residing under the patio/deck. To ensure this does not happen, install applicable size boards horizontally across the length of your deck on the bottom.
Remember to powerwash and stain your deck at least once every other year for optimum durability/life.
Good luck on your outdoor endeavors!