Absolutely option 2. Odyssey is a great ship, as is MG but CoCo Cay and Labadee is the better itinerary but that option is cheaper. It's a no brainer. Getting to FLL would be the only headache.
90 % of the water parks are free, all of the ones geared towards children are free. Thrill waterpark is extra yes, and the rides are for people older/bigger than a 5- and 7-year-old.