I also think GREP_OPTIONS should be removed, but I'm unwilling that I won't be able to ignore the directory without a command line option.
I use GREP_OPTION='-d skip' to ignore directories by default in grep 2.11 or laster. (They were ignored without a option in 2.10 or former and other imprements of grep on Solaris, HP-UX, etc.) Even if I define an alias "grep='grep -d skip'", when "find . | xargs grep" doesn't ignore directories. Norihiro