Well, to answer your questions: Neither seems a good option, though #1 is infintely better than #2. However, that is tempered with the reality that there are 'balls' and then there are balls (can't believe I just said that). I've been to balls where I was the only person in a dinner jacket and balls where I was decidedly not the best dressed. So some guidance there would help, for in the former situation you could get away with anything, whereas in the latter you might feel a bit like a rube, or at least out of place. Nothing worse, in my book, than going out with a beautifully attired woman while looking like a schlub.
If I had to wear a non-tux tux to a ball, I'd wear a black peak lapel suit with the rest of the accoutrement, but I'd only do so if few would know the difference.
Like everything else, its a matter of appropriateness.
That said, I 'd totally scour eBay; I had to get a 2nd DJ when mine was out being relined, and I scored a nice Edward Sexton. I like G&H,though I find it rather lighter than midnight.
So I don't know much of anything about it. It's really not an important event, at least not for me. I found some photos online and most were wearing bad tuxes that were ill-fitting. Some were wearing a black suit with a regular black tie. Since I'm unsure of the next time I'd wear a tuxedo, I think I might try one of the options I mentioned. I'll look at my options online, but I don't think I'll have luck finding something that takes very little tailoring to be ready in a short amount of time. The G&H tuxedo does look fairly blue... maybe it's just the flash though.