I watched both scenarios.
If production costs were a factor push come to shove... I would take the ptviewer scriptor version. With a little bit of extra effort.. you can easily replace the circular blue targets with the 'arrow' gif's.
The fading from one image to the next.. is not significant compared to quickly seeing the next image.
Great View ... thanks for the show and tell comparision effort. The panoramas are really quite high quality.
Only a single thought this evening.
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EasyPano - Panoweaver