MHabeeb,
I think you should first find what you want to achieve. Lower the cost of the storage, improve the performance, or what? Also you have to decide do you need all the data on daily basis or most of them can be safely moved away from the database and kept somewhere just in case that someone needs that.
Then you can answer your questions yourself.
Do not pay so much attention on the other people's oppinion. Yes, they could be more experienced but they for sure does not knows your exact situation.
Better try to make a plan for both approaches EXACTLY how that will look like. See the pros/cons of both and discuss that with your boss. Do not forget to count the price of the partitiononing option and storage and etc.
There is no just black and white solution, they all have pros and cons it is not exactly like I WAS RIGHT or I WAS WRONG. Both will work, the question is what will fit better in your situation

Regards
Boris