Hey Corey. I got out of the Army 5 years ago and have been in school ever since. I personally did not want at all to get a degree. It has been a long road and I will finally finish my B.S. in aviation this spring!!! When I started I used my Montgomery G.I. Bill to put me through A&P school and then switched to post 911 to cover my flight training and regular college. I would say that if you really wanted to fly then go with choice #2.
However, Voc Rehab will also pay for flight training as well and will also take care of the degree while paying you E5 BAH for duration of training. That may be another option for you.