I could never be friends with someone who unironically chose option 1. It doesn't even sound like a good idea in theory, let alone practice. You do realize that Nazi Germany was less elitist and bloody than what your friend proposes?!
If it came down to stricter government to control population, then yes I would support that. Perhaps forcing people into nursing or whatever's most important vs. least applicable people if things got really dire. However, I'm not of the opinion that humanity is about to eat itself due to overpopulation... if nothing else, even if his view of imminent destruction were true, the world is big enough to support everyone if there weren't big cities while there's still completely empty places everywhere else on the planet. Look at a picture of human light pollution.
If it really came down to those two options, where it really did matter to human survival whether or not we chose Option 1, I'd still choose a death in an alley over a packet of Jell-O rather than be some 'chosen people'. Chances are, from my high school grades alone someone I've never met would decide I don't matter and send me to be killed. There's no guarantee the "smartest", "most beautiful", "most fit" etc. could be arsed to get up and do their duties to human health or space exploration. Why should they?