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False dichotomy, I'd rather see other funding models like Patreon/Kickstarter. Paying gets you early access/bonus stuff/whatever, and you don't need intrusive technologies like ads/paywalls.
You may want to clarify, as patreon and kickstarter are often used as paywalls. Do you mean people can donate to a cause, and everyone gets the benefits?
The latter, but I also don't really mind paywalls in the form of "get early access" like SMBC comics or "get exclusive special content" like a lot of bands do.
You can just straight paywall with those too, but you don't have too. A band I like crowdfunded a music video and you can watch it free on youtube, but if you didn't crowdfund it you missed out on perks that go all the way up to being in the music video