Advice on budget: Is this crazy?

I'd do option 1, but with some revisements.

That's a long drive to take! (We're in Ohio, and would never consider driving it).. you're cutting out 4 days of vacation time.

I would skip the rental car, and just do Disney transportation.. saving you $500... rent a car for just the days you'd need it to get to Universal, or take a taxi there.

I'd see about renting DVC points if you really want Deluxe, or better yet, just stay in a moderate resort and save tons there.

You could probably cut option 1 down to about $4000, and have a 9-day vacation versus a 6-day one.

Just my opinion, :)

I agree with this. DVC point rental can cost less than moderates depending on what deals are going on. Drop the park hopper option unless you are sure you will need it, and skip the car.
 
I would do option 1
- Since you are going go the MK every night, stay at WL. It is one of the most economical of the deluxe hotels and it's cozy and romantic. You can also do a moderate, King bed at POFQ is also ideal for a couple
- Do Universal the last 2 days, rent a car for those 2 days only. Use Disney transp
 














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