2) Public accountability for offensive speech is a good thing, IMO.
Given the choice of 1) or 2), 2) is more consistent with the concept of freedom of speech and the rights and responsibilities that come with that. I'm not even arguing that whatever their ultimate punishment will be matches the severity of their 'crime' - that's impossible to judge, and it will vary from person to person. I'm sure my opinions as a white, Christian, straight, male in the South who has never in his life been disadvantaged by the color of his skin or his religion or his sex or sexual orientation might be entirely different than some black kid who went through rush at OU and was blackballed for the color of his skin.
But as a principle, the general rule, I'm for public accountability for this kind of speech. They're free to say what they want, and the public is free to condemn them for it. I don't know how else this delicate balancing act of rights and responsibilities can work.