I'm mystified why you think 1) matters in this argument. Obviously this is a very different discussion if they dropped the FRAND patent suits and only sued on non-FRAND patents.
And, since you ask, I think threatening the entire industry standard (which affects every single company that implements the standards) is much, much worse than any action between two companies. They have enough money to sort it out themselves.
Personally, I think promoting and legitimizing (from a technology company, not a non-practicing entity) the use of garbage software patents as a legal tool (and, even worse, an injunction-producing legal tool) has the potential to do far worse damage to the software industry in the long run.
And, since you ask, I think threatening the entire industry standard (which affects every single company that implements the standards) is much, much worse than any action between two companies. They have enough money to sort it out themselves.