You could do that, but your solution #2 still does not provide a power feed to your firewall (bulkhead) connector. You need to provide the power feed to the bulkhead connector also, if it's not there already. That could also come directly from the battery, but keep in mind, in the OEM harness, that was all spliced together along with a fusible link for protection of the alt and power feed circuit.
Another thing you can do is peel out the alt-and-power feed cable out of the harness, and repair or replace it as necessary to maintain the fusible link portion.
OR
You should consider a replacement engine harness if yours is not repairable.
George
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