in the end its upto you but i would still go with number 2 because you have a wider range of options, then again number one has the lcd interface, without reading the datasheets i dont know for sure but sounds on the face of it that you could connect LCD straight to it! so could use smaller number of micro pins. what is the display actually being used for?
that might have a bearing. do you need GPS? is it a fixed or mobile unit (for the pocket say), would help a great deal if you gave as many details as you can, stuff like is it to be battery powered or fixed power matter because then people will look at current consumption and stuff like that. at the moment all anyone can give you is an opinion based on little information and i am gonna bet you have left a tiny really important detail out! best way is to think of yourself as a client talking to an engineer over the phone and describing what you want built and why!