Why does the universe 13.7 billion years ago appear to be expanding at a rate that would allow it to fill a Schwarzschild volume by present day, but 13.7 billion years ago all that mass appears to be filling a much smaller volume, namely 13.7 billion lightyear radius, much less than the Schwarzschild radius?

Possibilities:

1. Range to most distant objects grossly underestimated.
2. Light has been smeared and redshifted due to relativistic black hole flashover, or maybe tired light theory.
3. All the mass in the universe was compacted into a singularity until 13.7 billion years ago, at which time it was released by an unknown mechanism and allowed to expand to fill the largest possible volume.
4. All the mass in the universe is expanding & contracting like a giant hydrodynamic spring within a cosmic-sized event horizon.
5. A complex combination of multiple blazars 13.7 billion years ago is giving the illusion that the most distant matter was being compacted by a single black hole into a smaller volume.
6. Two objects inside a black hole will appear reshifted w.r.t. one another.

I guess I've just summarized all the popular Big Bounce, Big Bang, Tired Light, Dark Energy, White Hole ideas in the popular media. Either I understand it more or I understand it less now. Not sure which.