Hello Yair,
Using alternative 2 with one large instance for all your users has certain advantages, but you should be aware of disadvantages such as:
- Everyone uses the same DBMS version.
- An upgrade means all users are off, not one or two.
- All users enjoy equal quality of access, in case of different usage patterns, and throttling is problematic.
- Users should ideally use the same version of your app.
- Economies of scale are more difficult to implement.
This discussion group is oriented more towards general opinions, trends, and issues of general nature touching the app engine. For coding and programming architecture, you may be better served in dedicated forums such as stackoverflow, where experienced programmers are within reach and ready to help.