Which name would you choose?

Based off of that, I'd go with Name 2. Yes, the initials may be problematic, but that's far less noticeable than having a bad nickname. Nicknames are very common and almost a social requirement to display bonds of friendship. She WILL have nicknames, so do the child a favor and give her a name that will keep her dignity intact when it happens. 10 letters is indeed long for a first name, but that can also make it exotic and grant her immediate intrigue. Popular/overdone/boring names can be just as damning as weird/anachronistic ones, so the status of Name 1 doesn't win any points from me. I can think of several long names that are beautiful and less common, and simultaneously allow for fun and agreeable nicknames. I do appreciate family ties and history, though, so I would suggest using Name 1 as the middle name for that reason. Also, it's not unheard of to use middle names (if "normal" enough) as a person's nickname, so it'll always be an option as a term of endearment if both you and your daughter appreciate it.