Thank you all for your inputs.
#1 is the approach we've been working on and it is certainly my personal preference for the next version of our preamp controller. Whether or not we stay with the Apple remote or end up with a custom Tortuga remote, any remote we use going forward will be very simple and will rely on a menu driven visual display to navigate through custom options and setup. Much like the Apple remote, remote buttons will be limited to Menu (display menu), Raise/Lower (volume etc.), Left/Right (change input etc.), Mute, Enter (confirm/select) and possibly On/Off although even On/Off will likely become the default display item when the Menu button is pressed so may prove redundant.