Hi Hope,
First let me address the BCG question. Doctors have found that BCG is not effective in low grade, low stage TCC.
Right now I am on a four month cysto schedule, but becasue I never go more than six months without seeing my urologist, my doctor finds my tumors very early and uses fulguration to burn them out. This procedure (I assume), is safer than a TUR, especially since there is no anesthesia involved.
As for the mitomycin, my doctor did mention it once, but never followed through with it. Honestly, I am not sure why she hasn't tried it and I never remember to ask about it.
You said you are not sure 'about when you do a drug and when to do surgery'. I feel certain they always use some surgical method to remove tumors. The drugs are used to help prevent new tumors from recurring. And again, that is only at certain stages.
"Watchful waitng" seems a fairly broad term. I really think it is meant for higher grade tumors. Sort of ,'let's wait and see before we do a radical cystectomy'.
On the other hand, maybe some folks refer to the standard practice of scheduled cystos to see if a new low grade/stage tumor develops, as 'watchful waiting'.