All perfect praise be to Allah, the Lord of the worlds. I testify that there is none worthy of worship except Allah and that Muhammad, sallallaahu ʻalayhi wa sallam, is His slave and Messenger.
What should be done is to respect what is written in Arabic letters and not expose it to disrespect. Whatever is considered disrespect of the Arabic words should be avoided. As for what does not constitute disrespect, such as the second situation mentioned in the question, then there is nothing wrong with it.
Allah knows best.