Robb wrote about this in the first Performance Menu I read. He was specifically talking about creating a power bias.
My take on it is that I have been using option 1 based on the sport I am currently doing BJJ. We grapple in class for 8 minute rounds, tournaments are 6 minute rounds. I have been training at the highest intensity I can maintain for 6-8 minutes than taking a 2 minute break.
I looked up a training program my triathlon coach had me on 3 years ago and out of the 8 workouts each week I was doing 3 sessions a week using option 1. I would do several different types of sprints in the pool but one common one was swimming 50 meters on the 1's. You swam as fast as you could for 50 meters than rested until your total time was a minute. I would start out about 45 seconds work and 15 seconds rest. As the workout would progress that would generally change more towards 50 / 10. One workout was a 100 meter ladder where each time you swam the 100 m you had to beat your last time and you had 30 seconds of rest in between. The goal was to swim quicker on the last set than your race pace.
On the bike I would do big ring intervals while in the middle of a training ride. I would switch to the big ring and ride as hard as I could for 3 minutes than recover for 5 minutes. I would do 3 to 5 of these during a 2 hour ride.
Running I would do the exactly what you talked about all out sprints for 400 meters with 2 minutes of rest.
Two things 1) having a coach totally changed the way I trained and 2) using the training above along with a large volume of endurance training I took first place in my age group at an Olympic distance triathlon. For the record this particular triathlon wasn't the largest in the state of FL. This is the only sporting individual gold I have ever achieved and I really attribute it to my coach. The sad part was that I looked like a prison camp escapee I was so lean it was silly.
What we think, or what we know, or what we believe, is in the end, of little consequence. The only thing of consequence is what we do. -John Ruskin