Try this, to see if you can get a fast grip on your problem.
Don't be afraid to divide the use cases between packages. You can simply drag a use case from the Project Browser tree onto a diagram, regardless of where the use case or the diagram reside in the project hierarchy.
Your second idea will also help you, but dividing the views so that the complexity of the overall system does not prevent a reader from understanding what goes on in each component.
Now, create a package (say) for a high-level view of the system. In this package put a single use case for each major functional [See note 1 below] area. This would be along the lines you are thinking of in option 1. Do not use your current use cases; just create one for each area, and use a 'generic' name. You now have a picture of the overall system, divided into function areas.
Make each of the use cases on this diagram into a composite element - see the EA help for how. On each 'child' diagram, drag your highest-level use cases from the appropriate functional area. Now add any «include» and «extend» use cases that related to these. Do not add any use cases that do not belong in this functional area, even if they share the lower-level cases you included.
You should now have a set of simpler diagrams, with a higher level roadmap. Take it from there.
[You could divide this up in other ways, and probably should. Search the forum or current literature for cross-cutting use cases, and other approaches.
My goal above was to get you moving forward as fast as possible, using your work to date.
When you have the luxury, take a close look at other approaches to partitioning complex systems. See if you can raise awareness of these ideas in your organization. Perhaps there is a business case for evolving your paradigm, and perhaps there is sufficient interest and commitment to do so.]
HTH, David