Say there are many different meshes with transformations that changes more or less each frame, what would in general be the faster of these drawing methods:
We can assume that all meshes are drawn each frame so not copying vertices for case 1) would not matter.
Option #2 will almost always be faster. If you have N vertices and M transformations, it's the difference between doing ~N arithmetic ops on a CPU followed by a ~N bus transfer, versus doing a ~M bus transfer (faster) followed by ~N arithmetic ops on a GPU (also faster).
The only times this would be a lose is if your CPU were way faster than your GPU in terms of total throughput for vertex manipulation (very unlikely), or if M is the same order of magnitude as N.