I see your option #1 and option #2 as centered around him.
You need to put yourself and your children front and center stage. Where do you want to live? What would be best for you and your young ones?
You have no control over where he is going in this. If he wants to get in recovery, he will find a way no matter where he finds himself. And he likely will not take that path.
So forgetting him for a second, where do you want to point yourself at this juncture? What are your dreams and goals? What would be best for you and the children?