Why discount Gift Cards? We see a number of people doing this for promotions. So for instance a spouse wants to by a stand up paddle or ski package, and they are a good customer and you want to be able to extend a discount to them. This way you provided a discount to the person actually doing the purchasing.
You do need to be aware that this can lead to double discounting if the person purchasing the items buys something on discount. One way to control this is to have a disclaimer that the Gift Card is not usable for discounted items. Or better yet do the discounting for larger gift cards, so that the total dollar markup on the items being purchased with the gift card supports this type of double discounting.
The issue with discounting a gift card, is that you are selling an item for a dollar value that is to be used as a payment method later. So if you discount the price of the gift card you will be also discounting the payment. And if you are purchasing a $100 gift card discounted 20%, you don't want to give the person the Gift Card for $80. These solutions solves this problem.
If you are discounting using method 2 and think you might be doing it a lot, you could setup a discount rule that would automatically be applied (dollar or percent amount off).