I also sort of like design 1, it has a nice clean feel to it. When it's shrunk down it won't be confusing about what the "S" is.

edit: after looking at both again, the horns aren't that intrusive. Calling them "horns" and associating it with anything other than little spikes on a font is ridiculous. Look at any Serif font, you get the same sort of thing. This is just tasteful styling.