Option 2 is the way to go.
As you point out Cameo can use an Activity to draw a built-in Activity Decomposition Map, which is generated dynamically.
Additionally there’s a wizard which will generate a BDD from an activity, showing activities with rectangular symbols and composition relationships between them (option 1). This however isn’t dynamic so you will have to re-run the wizard manually if there are any changes.
So, choose option 2 and get option 1 for free!
Not sure about the “engineers won’t buy into this” comment. Obviously engineers who aren’t competent in SysML won’t, but then why would you try to do MBSE without having the proper skills?
You could try to avoid this by creating the required structure in a table, in Excel and importing or using a product like MapleMBSE
I’ve never had any problems with relation maps, so can’t comment on that. Creating custom maps is relatively advanced, but that’s mainly due to the complexity of the meta-model.