I vote for the first option. It’s simple and obvious and requires no additional thought from the user.
If it can be renamed later then those that care can do so, but it doesn’t seem like a hardship to live with a standard name for the trash folder. 
The first option looks simpler, but from a coding perspective it will be rather complex, especially if there's no API to determine a conflict and trigger an action.
(We will run into a conflict when you start using the plugin on 2 offline clients and then sync.)
The 2nd option also allows people to use separate Trash notebooks on different clients - although they don't have to.
Let's see how the vote turns out.
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