"A) Modify my remote with the FrSky DIY kit
B) Change from a USB camera to one of the small FPV cameras (made by sony I believe)"
Not familiar with the FrSky kit, but the most popular LRS systems I see in the field are the DragonLink, Immersion RC's EzUHF, and Iftron. Watch some videos on You Tube, there are many, see what they are using.
Monitor power consumption of the smallish (7/8/9 in) monitors used in FPV simply isn't a problem. Most pull less than one amp when combined with the video link receiver. Most will also torerate the somewhat lower voltage, (12.6 down to 9.8 or so), of a 3 cell LiPo pack, as well. Seldom is voltage conversion neccessary, check before you buy if there are doubts. If you fly a 3 cell craft, old "tired" flight LiPos are good for this as the total current drain is low unlike the aircraft. A 4 or 5 Ah LiPo will power the monitor/reciever combo far longer than you are likely to fly in one day.