Solution #1 allow people to change music and volume themselves (which is quite good if you want a party to run itself while you're having fun).
Solution #2 is already implemented and locks the station (which is usefull but doesn't allow anyone to change anything without knowing the password) so -1 already done and quite restrictive compared to #1.
There is a great plug-in for this function. But I can't see any reason as to why it shouldn't be in the main application.
For idea's on how it should work, just look at the plugin!