If you go for the first option things are worse for both sides, you get a stagnant economy, and Catholics are without jobs and opportunities and get killed and imprisoned without trial.
Since opting for the second option Catholics have gained rights due to the power sharing system. Good schools that used to be almost entirely protestant are now approaching 50/50 and the economy is now improving because people know their investments arent going to get blown up (and ironically because tourists come to see the murals )
Catholics realized that cooperation worked in their interests and it did. Thats why they voted for it. Even the I.R.A excepted this which is why the current deputy prime minister of Northern Ireland is a former I.R.A commander. Why Americans have the hubris to think they know better then them, despite never having lived though this conflict, i don't know.
"He who does not think himself worth saving from poverty and ignorance by his own efforts, will hardly be thought worth the efforts of anybody else." -- Frederick Douglass, Self-Made Men (1872)
it's the fault of the invaders for staying. They should have gone back to their own island. What is in Ireland that they don't have or can't get easily enough in Britain/Scotland/Wales? Nothing. They've just been stubborn and dug in and now there's no easy way to get them out. That's their problem. Their mistake.
"I do not underestimate the ability of fanatical groups of terrorists to kill and destroy, but they do not threaten the life of the nation. Whether we would survive Hitler hung in the balance, but there is no doubt that we shall survive al-Qa'ida." -- Lord Hoffmann