I have to say that I don't really think these options cover it all... I'm the sort of person who likes to go for someone who I feel is attractive; maybe it's just because I'm a person who's quite secure in my body and appearance, but I never really feel that I'm settling or reaching, or that I'm fooling myself. I don't really ever consider my personal appearance when I'm attracted to someone; I either like them or I don't. :S
That said, the guy I've been with for the past few years thinks I'm hotter than him, but I think the opposite. So I'm gonna flip a coin and select an option. xD
I think I'd consider my last boyfriend definitely hotter than I am, but I don't think of myself as a "reacher". I go out with people who I just plain like, whether they're considered hot or not. Outside beauty fades over time, so I don't put too much stock into it outside of hygiene.