Confederate Strategic Options in 1864

In many ways 1864 was the critical year of the American Civil War. At the beginning of that year, despite a number of setbacks over the preceding twelve months, the Confederates were still in position to win the war (and thus independence) if only they could tire the Yankees (and the northern public) out. But how best to go about this?

You tell me whether the Confederates did about as well as they could have in the spring and summer of 1864 (and whether replacing Joseph Johnston with John Bell Hood really made much difference). What alternatives did the Confederates have, and why did they pursue the course they did?