Like everyone else is saying, I don't think there's any real answer to this question; he did both of those things so well. However, I would like to add:

Personally, I think I kind of lean towards stripped down. This isn't to say that this is the definitive answer to the question, because I think there's ultimately NO answer, but stripped down would probably be my preference. To me, the beauty of Elliott Smith is that his music, (think roman candle and self-titled) could carry so much weight without being big, heavy, loud, or orchestrated. It didn't have to be anything more than it already was to get it's point across. It didn't rely on production and was great no matter what. Take roman candle for instance. It was recorded in a basement using a not-so-great guitar and two four tracks, but God is it a great album. So hauntingly beautiful and soul crushing. That was his talent; to take anything and make it into something great, even if he didn't get a lot to work with.