Ask HN: Help With Network Filesystem Implementation

I've been working on a syncing, network filesystem and I wanted to get your advice on an implementation detail. Our hope is that users will have all of their files (and eventually programs and settings) synced in the cloud.

Which would you prefer?

Option 1:

    > You install our software, Skyline, on Device A
    > We create a folder in your home directory, /skyline
    > You select individual folders and tell Skyline to sync them
    > Each folder you selected is accessible from both its original location, and from the /skyline folder
    > You install Skyline on Device B
    > A /skyline folder is added to home, and any folders you added from Device A are accessible
    > You select individual folders and tell Skyline to sync them
    > The folders you add are now accessible in their original location, in Device B's /skyline folder, and in Device A's /skyline folder.

    > You install our software "Skyline" on Device A
    > Your entire home folder is now being synced
    > You install our software, "Skyline" on Device B
    > You are asked whether files from Device A should be merged with the files on Device B, or if the files from Device B should be deleted and replaced with the files from Device A

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