Your option 1 is incomplete. It should read more closely to: You go to grad school and spend ~6 years working extremely long hours at nearly minimum wage with

Your option 1 is incomplete. It should read more closely to: You go to grad school and spend ~6 years working extremely long hours at nearly minimum wage with no benefits. You then spend 2-3 years on a postdoc still with relatively low compensation. There still are far too few academic positions available. You now either become an adjunct (and get caught in that vicious cycle) or you do another postdoc. Repeat ad nauseum (or until you give up and move to industry anyway)