This is hard to tell without testing. If this was a smaller table i'd go with #1 (as long as everything is AMP-local).
It will mainly depend on the number of columns returned (you were talking about "hundreds") and the data size. You need to run some tests with yor actual data and check explain/DBQL.
You might also hit some other limits like maximum number of columns in a table or maximum row size, i usually don't care about , for me it's large enough. But SAS guys try to run strange things on a DBMS :-)
Dieter
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