What would you do?

Can you do option 1 until you have the ATP night/cross country/instrument requirements met, then switch to option 2?
While technically having a larger approved list of airports, program 1 still gets limited to a fairly narrow range of airports, especially for PPL students where their mindset is based on doing things in a procedural, rote manner with little ability to adapt to unfamiliar or changing circumstances. While program 1 allows for an accelerated rate of flying, you still end up with weeks of downtime when you get into solo phases as well as the frequent traffic jams at check ride time. There are, it seems at most times anyways, fewer designated check instructors leading often times to waiting a week and sometimes more for stage checks. Program 1 is also, if it's the one I think it is, generally lower on the list for aircraft priority, meaning when there are multiple maintenance events for the fleet, those students get involuntarily cancelled first. Still, program 1 is the most flexible of the part 141 programs at the school and it also lets you have the option of also teaching the part 61 students (self paying as well as a few foreign contracts). Program 1 keeps you flying the Diamonds, DA40s and DA42s.

Program 2 is a long list of monotony but vastly superior students in terms of language (not all are native english speakers but they also have learned english long before coming to the school) and also theoretical and ground school knowledge. Program 1 students literally want only the know the questions on their tests and will only go so far as to memorize the answers to what they think will be on the test and no more. Program 2 is more pay but doesn't allow for cramming in hours as fast as program 1, though honestly with the frequent waits for check rides you probably won't fly any more or less in either program over any given stretch of time. You get the joy of having control over the only door in the Archers and Seminoles you will be flying, though that's little consolation in the summer time as you sweat to death in either Diamond or Piper.

If you want to merely get in and get out, go with option 1. Yes the students can be vastly more frustrating at times but you will be able to move on faster if long term instructing is not your goal. Or, once you get more hours you can take option 3 like me and be stuck here instructing even longer for more pay than either options 1 or 2, but then again, I needed the $$ mostly so I can save up enough to take a nearly 50% pay cut when I make it to first year regional pay.
Tough one. I'd probably go with the option where I felt more comfortable. And perhaps depending on how big the pay difference is between jobs.
Oh, and to throw fuel on the fire, just announced changes to the pay structure. It's not going to be vastly different BUT it's going to change in ways that some will find unsettling.