Option 3 : neither.
It's people who make things bad, not MJ or laws concerning it.
8 year old kiddies smoking pot can't be considered good it can mess them up for life, still this doesn't make pot bad.
busting joe average potgrower/smoker can't be considered good either he deserves some serious ganja smoking after all he's working his ass off all week long, but the same laws allow law enforcement to bust large scale ganja grow ops run by organized crime, which should not get too rich & powerful.
Asking us which is worse, is like asking us good and bad.
You can't distinguish good from bad without including a purpose.
Pot alone doesn't have a purpose by itself, people assign it a purpose (and usually a very good purpose indeed)
Laws do not have a purpose by themselves either, just a bunch of text in a book.
It's the people and how they chose to apply the text that make the difference.