I personally prefer the second. I don't see it as a problem if acronyms don't share the phonetics of the words it derives from (yes I pronounce gif with a soft g like some monster). A good example of this is *everybody* pronounces "laser" with "a" rhymes with "ape" and the "s" like a "z", when laser is an acronym for "Light Amplification by Stimulated Emission of Radiation".
Either way, good analysis.