I don’t get your ambivalence, when you seem to understand that the negatives of #2 far outweigh the positives[1] of #1. That’s something that has always been really weird in these LLM discussions, it’s like that Tom Toro cartoon:

https://www.newyorker.com/cartoon/a16995

[1]: And even those are subjective. I wouldn’t want that, and the other replies so far agree that would be bad.