My money is on #2. There's lots of precedent for distributors doing strange things with plants in order to sell more.
But do give it a try and let us know how things are going in a few years. I believe one year of not having a dormancy won't kill the hosta, but with a few things there will be a general decline until the plant just disappears.
That's an interesting list for pod sterile hostas. As you can see, there are quite a few. In addition, there are some hostas which will produce seed which will germinate, but won't produce viable plants - 'Cherry Berry' is one such. Virtually all seedlings are "fatal whites" (with no chlorophyll) and they don't live long.
And even if you have only one variety of hosta, virtually all the hostas grown today are hybrids. As such, they won't come true even if self-pollinated.
So, hosta seedlings are mostly solid green (or solid blue or yellow). Why do some of us persist in growing our seeds? Well, I guess we just want masses of plain Jane greenies (just kidding). You can get other characteristics in your seedlings - frilly leaves, red petioles, etc. And now and then you get wonderful surprises as well. I've got 3 or 4 seedlings I'm still growing years later. But you need to develop the ability to cull mercilessly or find friends and neighbours with large lots to grow all your rejects.
