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Re:Google Analytics - 20 Ways to Fix Analytics. Please Hurry? by ComputerGuru on Sunday May 18, 2008 @03:13PM (#193534)
Number 1 is already possible and its even advised by Google. However, you don't get email updates.

I can't find the link that advises its use right now, but this link talks about hosting ga.js on your server: http://www.google.com/support/googleanalytics/bin/answer.py?...

Re:Google Analytics - 20 Ways to Fix Analytics. Please Hurry? by lux on Sunday May 18, 2008 @11:54PM (#193841)
That page seems to only be talking about the switch from their old to their new javascript include, which is still hosted by them... But without email notices, hosting it yourself isn't really a viable or stable option unfortunately.