gmatdriller1:
I don't think it makes much of a difference between Option 1 and Option 2. It's really more of a personal call as to the direction you want to take. The schools you highlighted in both options feel somewhat similar in terms of competition. Option 2 might be slightly easier, but I wouldn't necessarily go with it because you think that's the pathway of less resistance.
The big concern for you is going to your age. Even though you have graduate school already under your belt, coming in at 33 is going to make things tough. You're in this middle ground between being on the older side for a full-time MBA and on the younger side for the EMBA. There are people who enter a full-time MBA at 33, but it's not terribly common.
Also, your GPA/GMAT combo is solid but not stellar. That might make some of these schools (MIT, Wharton) more of a reach. I wouldn't necessarily recommend retaking the GMAT at this point unless you felt simply sitting for the exam again could help you gain 20+ points.
Lastly, do you have any extracurriuclar achievements or interesting, personal stories to share? Either or both of these can improve your chances.