Having the two side by side it looks like the new logo is a lot more professionally done
Yes, but having both potential new logos side by side:

Both look professional.
I'll be honest though, I also liked the way the old logo touched in the middle. Maybe we should somehow incorporate that as well? Broken up, the 'S' just looks like 2 sideways 'U's.
I would go with option 1. As someone above mentioned I believe it is more solid feeling and a little less cutesy. Also, even if you think it is only an extremely small percentage of people who might view the "horns" as evil, why alienate anyone? Keep the target audience as large as possible. Personally I like it much better without the "horns" and do not think they add anything but could detract.
My $0.02 worth.