American Airlines ordered 130 330neos and 100 "re-engined 737s" while Boeing was still pitching their "smaller 787" design. Note that this was the first time AA

American Airlines ordered 130 330neos and 100 "re-engined 737s" while Boeing was still pitching their "smaller 787" design. Note that this was the first time AA had ever ordered a non-Boeing plane. Everything stems from Boeing taking this deal. Within the constraints of the 737 type certification: more efficient engines are larger, larger engines must move forward, forward engines change flight characteristics, flight characteristics must be augmented to maintain certification. So you are correct that Boeing had choices other than "crashy 737", but that choice was between throwing billions away to Airbus and the crashy 737.