I agree with 2. Ataturk arguably had a positive impact on his country -- to the point that Turkey, as a secular democracy, was even being considered at one point for admission into the European Union. Whether this will occur now is another question, and indeed the Turks may be wise to avoid getting involved with the EU at this point!
It is very hard to know for sure which of these is more accurate. I would argue, however, that the former is more accurate. The Turkish people were devastated by their defeat in WWI and by the fact that the Ottoman Empire had been falling apart for some time. Ataturk gave them a greater sense of worth by creating a modernizing country out of the ruins of their antiquated empire.