I have definitely lived through #1. I started out at a "web agency for marketing agencies". Most of the time the actual client never knew we existed. Budget

I have definitely lived through #1. I started out at a "web agency for marketing agencies". Most of the time the actual client never knew we existed. Budget and features were set up front and the deadline was immovable as other forms of media would be directing to our apps/webpages starting on a specific date. Despite all of that we called ourselves agile. This amounted to pretending to be agile for 90% of the project and then as the deadline approached just staying up late/working weekends to make sure it was complete and out the door. Naturally it was worse when we had competing deadlines between different projects. And when do different clients ever have deadlines that fit nicely in between other clients? Being at a "product company", it is much easier to be agile about stuff where features and/or deadlines can be shifted