What I described is nowhere near a race car. It's actually a compromise which I have learned from using Koni adjustable dampers over the years; quickly responsive while being refined enough to smooth out all the bumps on the road to make you a better driver even above the 7/10ths driving limits. Do take into account that the suspension is only 1 component to this whole package refinement. You have to factor in chassis stiffness & design, bushings, tires, springs, brakes, etc...
Plus scenario #1 is what highly aggressive traffic drivers follow if they prefer to drive using all the allowable characteristics that their car provide.
Having driven or experienced (as a kid) all different types of my fair share of suspension combinations makes a difference to feel the differences; highly recommended to try them all, definitely helps with suspension tuning- dedicated race coil overs (Moton, Cusco, Toda, Ohlins, Bilstein), mid-level adj shocks/struts/coil overs (Koni yellows [my favorite benchmark for the middle ground], KYB AGX, Monroe Air, Bilstein PSS, KW V series, HKS, TRD), non-adj upgrade shocks/struts (Koni FSD,
KYB GR2, Bilstein HD & Sport), stock non EDC OEM shocks/struts (Sachs, Bilstein, Koni, TRD, Mugen, all the major car manufacturer brands), EDC shocks/struts (Nissan & Toyota [some of the first implementations of fully active EDC], Mercedes ABC, BMW DHP, GM MagnaRide).