I think the latter option is better because if you update it frequently then we would experience chapter 2 worse (because of unfinished graphics/cgs and other) and when the finished version comes out we wouldn't be able to play it the same way again because the content was only updated (it would be just replaying through the same story).
Besides, you shouldn't be pressured by a time limit, if you think that something needs more time or that you need a break then go ahead and do what you want to do.