I went with media queries, after reading a couple of articles on the subject.
About what you wrote, I appreciate mobile versions of websites a lot instead. They are striped down versions of the original because the screen size doesn't allow you to use the original version very easily, and so it's preferable to have a faster and easier to browse version, even if it's not always complete, as you say.
In any case, you always have the possibility to select the original version, even on a mobile device, so I don't think it hurts to have the possibility to choose
And, by the way, I often prefer the mobile versions of websites, because they just keep the relevant information: no banners, no annoying flash stuff, just the important things.