Ryan,
I don't think I'd call it "reduced options" when on a 480 yard hole a less than ideal drive leaves one with limited options. That's just the consequences of a bad shot. If you are left with only one or two options when you hit a really good drive, that's lack of options.
But look at it this way. You have limited options on a 480 yard hole because you need a pretty good drive to have a decent play at the green. Hitting a 3 iron off the tee may not be an option for you if it leaves you too far away for your second. So stretch it to 550, or wherever your limit is for being able to get home at all in two shots. Now you'd have more options, you could hit driver/3W and try to get as close as possible for a short pitch or chip onto the green, you could hit driver and then hit a 7i or whatever to leave yourself a full SW, you could hit a 3W or 3i off the tee to try to insure you stay out of the trees and rough, etc.
I think of most of us mortals look at long holes as reducing our options because it reduces the odds of the way we actually end up playing the hole being the way we originally intended playing it from the tee. On a par 3, I can be pretty sure I play the hole pretty much as I intended most of the time. I choose my club and play my shot. Maybe I miss the green, but other than hopefully rare occasions, I'm still pretty close to the green and usually still have an up and down opportunity.
The longer the hole gets, the greater the chance I do something stupid along the way, getting stymied by a tree, hitting on the wide side of the dogleg and leaving myself too far to have a decent approach at the green, heeling a shot into a bad lie in the rough that forces me to lay up instead of going for the green on my second, etc. But that's not limiting my options ON THE TEE, it is just limiting what choices I have left after I've made a mess of things with my golfing skill, or lack of same. On those rare days when I'm mostly doing what I want with my ball, I maintain those options throughout the entire hole and the way I play even a long par 5 can look very much like I mentally mapped it out on the tee. You know, kind of like how it works for Tiger 99% of the time!