Hi Rob, fun idea...
My thoughts...your supposition has a greensite that is probably too small for a fairly-sized green, and would create an awkward 7i-SW par four for all but the top 1% of long hitters. Also, option 2 is alot of risk for the result, a 30-50y pitch shot, so taking on that risk when a mid-iron to the fairway still leaves a spinnable wedge wouldn't make much sense.
I would concur with Josh S. that the thought experiment makes more sense with pushing the green back towards the 17th tee. But sort of awkward either way. Even pushing the green back towards the current 17 tee would only increase the distance to 250 or 260, which is still probably a par three, but with more bailout and a bit less spectacular shot values.