5230 Appliance - Best Practice for iSCSI SAN backup

As the 52xx Appliances do not support iSCSI attach I am just wondering what is seen as best practice for securing VMware data when the datastores reside on an iSCSI attached SAN.

I guess there are two options:

1. Create 1 or more VMware Proxy Backup Servers (Hot-Add) within the ESX environment

2. Install 1 or more physical Proxy Backup Servers (Hot-Add) which have an iSCSI connection to the SAN

Are there any more preferable ways to do this, or if not which of the above is best in terms of functionality and performance ?

Thanks,

AJ.