Without a doubt option #2 is the better choice. Axiom's QS series surrounds are amazing surround speakers.

Your room isn't all that large. That SVS is a lot of money, granted it's a beast of a sub, but (yeah, here it comes) the Hsu VTF-3 can EASILY hold it's own against that SVS and costs $500 less.

Good luck, and please keep us up to date on your progress!