I'm in a similar spot with a couple SGs I'm looking at for my D3 team (the reason I posted a poll yesterday). Both are below average ATH and DE, but very good PE. My dilemma was whether I want to sacrifice even more ATH and DE to go after the elite shooter, since one guy will likely get close to 100 PE, but no more than 30 ATH and DE.
I feel like you've got the same dilemma here, except we're looking at LP instead of PE as the major factor in the decision. I like that player 1 has the potential to be an elite LP scorer, but obviously you're sacrificing some ATH, all PE skills, and some WE to get it. So, I think player 2 could be more versatile if you need someone that can play 3/4, but if I'm looking for a strictly back to the basket PF who's gonna be a consistent scoring threat down low, I'm going with player 1.