1 Pet.4:5-7 The gospel to the dead?

1 Pet.4:5-7 Who shall give account to him that is ready to judge the quick and the dead. For for this cause was the gospel preached also to them that are dead, that they might be judged according to men in the flesh, but live according to God in the spirit. But the end of all things is at hand: be ye therefore sober, and watch unto prayer. It looks like 1 Pet. 4:4-6 might have 2 possible interpretations, the gospel being preached to them that are physically dead or spiritually dead. If it is physically dead (which may be indicated by v5) then it could match up with the Old Testament saints (Rom.3:25, Heb.9:15) in Abraham's bosom (Lk.16:19-31) and Christ preaching the gospel to them at his death and descending first into the lower parts of the earth (Eph.4:8-10). In this case they are judged according to deeds done in the body (2 Cor.5:10) as men living in the flesh (v2, Gal.2:20) and live in a resurrected spiritual body (1 Cor.15:44). If it means spiritual dead (Eph.2:1) then the gospel "preached to every creature under heaven" (Col.1:23, as in once delivered Jd.3) was so while they will be judged according to deeds done in the body (2 Cor.5:10) as men living in the flesh (v2, Gal.2:20) they could live in the Spirit (Rom.8:13). (Or if he means the spirit of man by the lower case 'S' which wouldn't have to be so necessarily- Ezk. 36:27, 37:14, Mt.22:43, Mk. 12:36, then it might be in newness of the spirit as in Rom.7:6.) It seems like the latter makes more sense in context because he "is ready to judge" (his coming- 2 Tim.4:1) and "the end of all things is at hand", so "for this cause" (we persuade men- 2 Cor. 5:10-11) was the gospel preached to every creature. v2 That he no longer should live the rest of his time in the flesh (that is according to men in the flesh) to the lusts of men, but to the will of God- that is, live according to God in the spirit. So they might be judged according to men in the flesh, but also live according to God in the spirit. In other words, The gospel was preached to the lost, so that although they are judged according to men in the flesh in the day of judgment for deeds done while in the body, they can live according to the will of God in the Spirit in this life.