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For #2 - please reread my post. I KNOW that I updated 100% of values for the other key to be 100% NULL. Yes, the optimizer would be dumb to use the index if that was the only parameter in the where clause. But that was my point -- that was the condition specified by the original poster. I am saying I don't think that the composite index gets used UNDER THAT CONDITION, and have demonstrated that.
I think you are being disingenuous here, because if all the values are null then it wouldn't make sense to use any of the three methods I suggest -- a full table scan would be the only efficient way of executing the query.