I just bought my first home in NY (1967 Wide Ranch) and the ceiling in the living room is pointy plaster (see above). Thanks to what seems to be some recently removed wooden beams, there are flat lines cutting through the pointy sections that make it look even cheesier.

The plaster is in great shape but I really want to get rid of it and paint a nice flat ceiling. I've read about and been given a few options from do-it-yourself'ers.

1. Sand it down with a "pole sander" and then paint over it.
2. Tear out the drywall and redo the whole ceiling.
3. Drywall (drywall...same thing?) right over it and forget it.

Any advice?

You may be able to scrape it off. I would try doing it dry but you may have to dampen it slightly to remove it, as alot of times these are just drywall mud applied over the drywall.