I feel convicted your first interpretion is correct.Well, the book of Enoch makes it seem like they didn't know it was rebellion, they asked Enoch to petition to God on their behalf to apologize.
But dropping the book of Enoch since it's not canon... if the "sons of God" are angels, in this case it would still mean they are capable of sex and procreation, with human females since as far as we know, Angels are all male.
If that interpretation is true well, God considered those angel/human hybrids to be an abomination (since angels are not in the image of God, and an angel/human offspring would also be not in the image of God). They were all destroyed in the flood then.. somehow more happened and Israel ended up killing them all.
If it's not true and Genesis 6 was just being weird about saying humans reproduced after their kind...
Then I guess angels can again be "as anatomically correct as a Ken doll"
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