#1 is what I'm currently leaning towards. I'm afraid the large block of text coming off as spammy in the eyes of the search engines and detracting from the overall look and feel of the website.

Secondly, if the page is long enough, the search engines might not even get down to the text intended to help out the localized listings.

Lastly, our actual location is that which is most important to us. We presently have our actual, physical address on every page. I think the addition of all of these other cities might detract from our actual location.

I think I may have just answered my own question, but I would still like to hear from others if anyone has opinions on this topic. Thanks.

EP