I agree with your logic, but you should replace 2 with "AI used by governments only". The haters would have more luck getting rid of nuclear weapons than putting the AI cat back in the bag. Governments will use it for surveillance. Think "sentiment analysis" to make sure you're not a terrorist.
#1 seems like the worst possible dystopia. We should shoot for #2 and have #3 as a fallback. The Culture is the worst dystopia I am capable of imagining.
I predict it will get regulated in the US, and that it will lead to regulatory capture. Solving absolutely NONE of the problems people complain about while providing NONE of the benefits AI could bring to society.