I agree with number 2, Ash and Hobbs have been saying all along this we a 4 to 5 year rebuild. Firing him after three years, when most of his players haven't seen the field yet sends a bad message to anyone wanting to ever coach here.
While the results haven't been there on the field, off the field there are improvements to facilities etc that will hopefully make this an easier sell to the next coach.
While I kind of agree, the idea of rebuilds is that you show some general progress towards the goal before years 4 & 5 as opposed to getting further away from it.