I think it depends on your how you application is put together. If you use ORM or design your tables to represent objects then option 1 may be for you.
I like to code the database as its own layer. I control everything and the app just calls stored procedures. It is nice to have result sets with complete column names, especially when there are many tables joined and many columns returned. With this stype of application, I like option 2. I really like to see column names match on joins. I've worked on old systems where they didn't match and it was a nightmare,
