Although yes I would prefer option 2, I believe that it should be number 1 at this stage but if it is ever possible to unlock all islands without teleporting then I would like it if the server admin could choose whether to be on island 1, 2 or 3 OR choose to unlock them all for free-roaming.
Also, when the mod gets more advance (i.e. if it can unlock all islands)then it would be good to have more players e.g. 64 to cover the islands.
BTW, will the train ever be enabled in GTA3:MTA?