If I understand your language in option 2, then I think it is incorrect. Are you saying the force on the falling climber is less than without rope drag? The total amount of force onto falling climber is the same regardless of rope drag. There is a total kenetic energy that must be "absorbed" by the rope system. The rope system spreads out that total energy to minimize impact force onto both protection and climber. With the rope drag, there is less rope to stretch therefore less time to slow down, therefore higher impact forces onto everything, except the belayer. (like what you said)
Assuming a frictionless top piece of protection, then the force on the pro piece would be double the force of the falling climber
Now if you are saying that the belayer feels less force in your option 2, then you are correct but who cares if that person is feeling less force.
The way I see it, friction is bad because it increases the forces imparted onto both protection and climber. Friction would be good if you were concerned about the rope stretching to much and hitting a ledge or something.
good question Mike.