installing a DIP package with broken legs
I would take option 2, the path of least destruction. Solder it back in place and use a conical (needle) tip solder iron.

For pins too short to make contact push in a skinny wire (like a small resistor) from the backside and tack solder it to the short lead, then solder the extension to the pad, then snip the excess off the backside.

You are right in that option 1 is too risky.