This seems like a wonderful position to be in, not a dilemma. The 1L SA on the coasts for non-diverse, non-IP secure candidates is a flame though, not sure why so much emphasis is placed here on it. Lots of other good 1L summer positions.
Have you considered transferring? Keep your grades up and you could transfer to a T6 - Im not saying its imperative or even TCR depending on your scholly situation , but you are in a position where its worth looking into.
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I retract my earlier statement. Even if you got a few B+'s, it probably would not make any difference in where you can interview next year except for maybe the very most selective firms. Having a 1L SA will make you very competitive once you're in the door and grades no longer matter except if you totally screw up (which statistically is extremely unlikely as an A student is generally incapable of getting a C even if they didn't study very much). Also, statistically you're likely set. You're extremely likely to get offered back 2L, and even if you repeated there is a chance you can strikeout. If it's realistic, I'd put all your eggs in getting a 1L SA. However, small firms and firms in different markets don't necessarily set you up the same way. If you want a v-10, and can get a 1L SA at a v-100, that's fantastic. However, some midlaw firm won't have the same affect.
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