I consider #1 to be god awful, and I refuse to sign any contracts with such clause.
It would be similar to saying a book writer who's main job is a typist would have to get his book approved (and potentially denied), or an artist would lose rights to his works he makes during his free time. It's out of this world wrong.
Isn't it just a matter of price though? If I was ready to accept a job for 100K, and someone said, "We'll own your non-working hours IP and pay you 300k" I would probably do it. Then I would work for them for a year, and do my own stuff for two. Companies try to make people sign it for free, but I view it as a negotiable item with a price, rather than a morality issue.
It would be similar to saying a book writer who's main job is a typist would have to get his book approved (and potentially denied), or an artist would lose rights to his works he makes during his free time. It's out of this world wrong.