The second one.
What I mean by they are set to off is that you can't "see them," and they have no impact in the game. Every role is set to have 0 impact on ratings an any other function they once had.
You could have, for example, an NFL Icon or Fan Favorite on your team and it will not have an impact on attendance, if player will/or will not sign with you, or anything.
Turning Play roles on isn't as simple as flipping a switch. you have to create menus, create icons, adjust what kind of impact each one has and how much of an impact they have, how they interact with each other, how they interact with the new ratings, how they interact with the new "progression based on potential" system, etc. A lot of work would have to go into "waking up" this dormant feature. While I really wish they would, or would have never turned it off in the first place, I don't get to make that call.
Just listen to the Podcast #3. Josh talks all about last gen franchise mode.