Go for the shorter cut... you can always let it grow out later if you want.
I never choose a haircut from a picture, because it often doesn't work with my face. I'd excercise the same caution. That said, Invoted for #1.
I'd let the person you trust to cut your hair make a little adaptation for your face. It may not look like the style you choose, but will look better on you. Don't have someone you trust, be wary.
I've always loved your hair, it looks good on you. I also like Bia's comment. Too many men in America have the same short haircut. THEY look like generic cookie-cutter GI Joes.
Let it grow. I vote for 2 but... long hair has so many advantages. Tie it up to get out of your eyes. Let it loose to warm your ears when it's cold. Be manly and sexy with a forthnight beard. Braid for the occasional viking fair! And a good conditioning three or four times a week is all you need to keep it tame. Only disavantage I can think of is always loose the scrunchies (and everybody looses it) but anything can be used to tie hair. I once tied mine with a piece of soft vine and it looked great.