I honestly would prefer the second item I listed to be put into effect. Since the way we kill civilians with these horrid weapons is so despicable, why not just stop starting wars? We wouldn't have to risk killing civilians if we didn't have so many enemies in the first place. In addition, we'll have to use other techniques if we don't want to harm as many civilians. To me it's absolutely worth it to use other options, even if the risk is greater for our soldiers- at least we won't be playing dirty and murdering innocents like the enemy might be fond of doing. How can we call ourselves good when we do the same things the enemy does? But of course, being against war and killing altogether, I would have to say our best option for resolving disputes lies not in guns and bombs, but in speeches and diplomacy. Come on, though- if we're going to play the bad guy by starting a war, might as well kill civilians, right? At least, that's how Washington thinks. I'm for peace and all the rest of us should be for it also.
Cluster bombs are a technology like all others, and banning part or all of it will do little to solve any root problem that may be present. Cluster bombs, as a weapon, can be bombed, but there's no telling what will replace them. Its better to work with a well established and known technology than to leave a vacuum.
Rather than focusing on how to improve cluster bombs, perhaps to better control the size and shape of the affected area, it might be better to focus on policy - namely when the use cluster bombs should be authorized. Detonating cluster bombs in urban areas will probably lead to many innocent civilian casualties, especially as modern opponents turn to more sequestered and clandestine tactics to protect themselves, like organizing in small cells hiding in populated cities. On the other hand, cluster bombs can be a very effective way to disable an airfield, a power plant, or an enemy camp. Improving cluster bombs does not address the issue of using the wrong tool for the job, which seems like the bigger issue to consider. A policy banning the use of cluster bombs in certain scenarios seems like a more effective option.