John,
I don't have a Canon camera so can only offer an outsiders view.
The march of technology.
I don't have any such option so end up estimating the best point of focus, and dof scales on modern lenses are not a patch on my old M/F lenses.
If I have interpreted your post correctly Type 2 will show in the flashing points if there is sufficient dof and therefore indicate if there is not. Whereas in Type 1 there appears the possibility of point of focus being selected at a compromise point if insufficient available dof and you would be non the wiser until the image is checked.
I think your preference for Type 1 is due to your familiarity with it and confidence in the results you get. If I had the option of either, then based on your descriptions I would go for Type 2.
Don