I think somewhere inbetween would probably be best. (don't know if live plants will get destroyed in your tank, but they do improve water quality. Not enough to allow any extra fish, but well enough to make a well-stocked tanks' inhabitants happier)
I think your top priority should be buying a new tank, and lowering the bioload.
Overstocking will cause a whole mess of problems.
Or, if there are some fish you don't like as much, sell them in the classifieds forum.
Your fish are overcrowded now, but keep in mind, with all the fish growing, in a month or three it could be twice as bad.
As far as stocking, there are many rules to judge the amount, but they all have flaws.
Look around on these forums... there's a web site to help you calculate stocking levels for a tank...
you can figure out what kind of tank you need to get, or which fish you need to 'rehome'.