I prefer the look of No 1, but No 2 has, on balance, a better location, I think. I was brought up in the countryside down unlit roads (not a village), so I have no issue with that; DB and SIL bought an ex-Forestry house in a tiny village (not as pretty as the one you are looking at) so I know that type of community.
However, remember the old mantra: location, location, location. Given the resources (time, money & imagination) you can change just about anything about a house, except move it. A mid-terrace will always be a mid-terrace ... Does that help?
If you like the location of one but prefer the decor / layout / whatever of the other, ask yourself what features you like: size/style of kitchen, no of bathrooms, size/ease of maintenance of garden, no of rooms - and consider what improvements are possible in the one with the better location.