That is a tough choice because your Torelli frame is not designed for touring so the stays are probably too short and the frame not designed for carrying loads. The short stays mean that you might very well be kicking the rear panniers when pedaling. Even if you can find a way to mount panniers front and rear, the frame is likely to be noodly -- particularly if you don't balance the weight well front and rear. I HAVE a touring bike but was rudely surprised by how poorly it handled when loaded just using the rear rack and panniers.
I would be inclined to try the trailer route rather than adapting a frame not designed for carrying loads. Do you know anyone who would let you try out a BOB trailer to see how the bike handles? I have read reports from many cyclists who have toured successfully on non-touring bikes using BOB trailers. You obviously won't be able to ride as fast and carefree as unloaded, but that would be true with a touring bike as well.