urban fantasy and knowledge

. . . specifically, the knowledge of magic and magical creatures.

Three basic models exist that I can think of:

1) Only the select few know that they don't live in a mundane world. Examples include Buffy and Dresden Files (by Jim Butcher).

2) The truth is out, and everyone knows that there are non-humans out there. Examples include Laurell K. Hamilton's work, both her Anita Blake and Merry Gentry novels.

3) The truth is sort of out there, but not necessarily all of the truth. Mercy Thompson's world (by Patricia Briggs) is a good example of this.

I'm starting up my revision of Witchy Woman (aka Pepper, aka NaNo 2007), and it has occurred to me that I'm not sure which model holds true. Having done the read-through, it seems that the concept of magic is not foreign to everyone, but even those who've heard of its existence don't believe in it. Mostly. But there are bits where no ones heard of it. So I need to make it consistent, and to do that, I need to decide what the truth for Pepper's world is.

I'm hoping for feedback here: Are there models I've missed? Do you think some models intrinsically work better than others? Do you have a favorite type you like to read (or write)?

Thanks!

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Please note that examples are representative only. I could've included many others, such as T. A. Pratt's Marla Mason books, robgoodfella's Cal Leandros books, etc., etc., etc. You want detailed lists, go see fangs_fur_fey.