I think Ancestry's approach is by far the most practical and useful.
The main aim is to get to the original image, where we can use our own judgement. The index is principally a finding aid, so recording every reading or version of an entry in the index improves our chances of finding someone whose name may have been misspelt or just wrong. When you search for someone on Ancestry, the results will include any alternatives that have been contributed.
Only yesterday I benefited from this while looking for a Romani person in the censuses. Romani can be particularly hard to find as some have unusual forenames which can be recorded in a variety of spellings, and some went by more than one surname, using that of either parent at different times, and men sometimes used their wife's surname.
Findmy past could only find my man on one census, but thanks to the alternatives Ancestry gave me three.
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