I am voting for the second option, that repeats should be considered.
My reasoning is:
*After this, we will be voting on categories separately, and I don't feel our options should be limited. If we don't want repeats, then it will just as well be decided as we vote on which specific categories to have or not have. So nothing will be lost by having repeats allowed, if that's what the group wants.
*I feel this way of putting the question is basically somewhat unnecessary and strange. It seems that a "repeat" is only categories with the exact same title wording. Why should two months with pretty much the exact same type of nominations be allowed (Mystery and Thriller) if "repeats" aren't? So because of this strangeness, I feel we'd be better off without this rule muddying things up.
*I feel that, with such limitations as is presented, this question seems like it is basically a referendum on the second classics month masquerading as something else. I feel that if we want to do away with the second classic then it would be cleaner to be decided directly by a vote on the second classic month, not on this seemingly bureaucratic middle-layer rule. At least if the second classic month is voted down in its own poll it will feel like it was decided directly rather than roundabout.
*Because of all the above-mentioned possible ambiguity and muddiness of this rule which may only create more debate, I feel it would be simpler for us to not have this rule and just simply vote on each category we're interested in removing or adding.