Answer number 2, with a few more points.
One of the main things that got us up in the morning for thousands of years is the peril of life. If we didn't get up early and milk the cows, collect the eggs, draw the water, and work on the crops for 12 hours, we were in grave danger of death. This attitude of "you have to do it otherwise you will die" was real, and convincing, and that motivation was something that we had available in our religious life as well.
In today's day and age a lot of people are far less convinced. Get up early or I will die? I won't die, I'll just miss the school bus, who cares? A day off never killed anyone and some abstract "you won't be able to pay your future mortgage if you continue to fail school and then you'll end up on the street and you might die!" argument makes no impression at all.
People being told that they "have to not sin!" doesn't make sense anymore. They tried it, it felt great and nothing bad happened, and being told it is abstractly bad for them in terms of nonspecific blessing or some future life doesn't make any psychological impact. Good, because it is not true.
In fact, being told that we have all these spiritual needs is the source of depression. Chassidus teaches us that the big mistake of some modern psychology is that it burdens us with more needs. Our mother never loved us and we hate our brother and we need to this and we have to that, and pile that on top of our religious needs and we can't breathe. Chassidus teaches us "hey, Hashem created the world, not you, despite what everyone is telling you. You didn't ask to be born because you didn't need to be born. Someone else needed you to be born".
Being told we must, we have to, we need to is making us mentally unwell and it is simply not true. Being needy is terrible for people, it's so closely associated with self centeredness and doesn't do well except when our situation is so dire that it gets us out of bed so we won't die. Above all, it is not true. We don't need anything.
The noble human soul knows the truth. It is on a mission and it is not needy, it is needed. Many people are taught the opposite: "you think Hashem needs you or your mitzvot? That's heresy! Of course He doesn't, it's for you. Don't you want Olam Haba? And blessings?" so they say, you know what, I've thought about it, and I don't really need it either. I tried it, didn't like it, and I don't really care.
The truth is that Hashem does need us, and He is real and wasn't created. This means that Him needing us to do the mitzvot is a real need. If people were told this, they would be excited to get up in the morning to serve Him, finding every moment of life a precious treasure of an opportunity to do something for Him. If Hashem needs me to not sin, then I can do it. I can let go of it for Him, if not for me, because it's true, He needs me to stop, and I don't need to sin.
We find a parallel in this in terms of other people too. We don't see how other people need us to stop sinning. We don't see or feel the consequences we have on others. A typical teenager is not thinking about his future wife and kids. He doesn't see how every sin he does is damaging his self control, his character, his strength, and squandering valuable preparation time, all of which his future wife and kids desperately need from him. Once he marries her and has kids, it is often too late. He has lost his empathy, his ability to love vulnerably, has gained a temper and bad habits, and can't teach them any Torah or good character because he didn't learn it himself.
If people knew in their youth how much they will one day be needed, and felt that pang of loving, noble, vulnerable responsibility in their heart as a dose of reality, they wouldn't sin. However, if they are not taught this, but are taught that sinning is bad for them, and their selfish neediness is appealed to, it won't make much of a dent, if any, on their psychology.
Being told that no, they are needed, by Hashem who made them, by their parents who made them, by their siblings and friends, by the whole world, all of whom are waiting desperately for them to stop sinning, it can't be ignored. The face of Yaacov appeared to Yosef when he was about to sin, and he couldn't do it. He couldn't let down his father. He couldn't abandon his mission. If a person thinks that nobody needs him to not sin, then nobody's face will come to them when they do it, and they will be stuck in the dark and the sin will be guiltless for them and become even something they are deeply fond of, and why not? It might be their only escape from the depression of all the "needs" they are "burdened" with by their religion, their parents and their psychologist...