I am looking at doing this very same thing. On option 1 I see a couple of things.
1. The stairs on the outside of the frontage is sort of distracting. I would hide the stairs inside and use the bottom of the stairs for storage.
2. I have 38' of the 50' of my building is doors. I thought I was being smart, but it ended up limiting the storage space for tools, like work benches, drill presses etc.
I have pondered this for a couple years and making it attractive on the outside is a requirement for the wife. I would go 2 stories and use upstairs for dry storage for things like Christmas decorations, the heat/air unit etc.