Well, I think both options are good. Whats the size of these packs? If you have numerous iaps all consisting of new levels, id recommend to have them downloadable, imagine shipping the app without the extra levels, quite a network-loadoff.
As you are stating, option nr 1 gives you the ability to add levels dynamically. This is convenient since apple are quite slow when it comes to uploading of new builds. Come to think of it, they are not super fast when it comes to revising your DLC either.
Due to the hacking risk and initial reduction of app-filesize, I would definately go with option one but if possible, i'd provide the actual content from a private FTP server. That way, the new content is available directly.