Yes, I agree, I don't think the situation is quite as black and white as #2 suggests. I would argue that any good leader needs to rule with a combination of respect and also power. In this sense, you could actually argue that Long John Silver is a "better" or at least a more effective leader than Smollet.
I don't quite agree with the previous characterization of Silver. It seems to me that he leads by respect as well since the other pirates have respect for what he has done in the past. Of course, he also leads by fear. But the thing is, Smollett doesn't exactly cause the men to respect him. I mean, they plot to mutiny against him, don't they?
Captain Smollett is a qualified sea captain who rules by respect. Long John Silver is not a true captain, and he leads his cutthroats by lies, deceit and promises of riches. As for the religious aspects, the men have all barely escaped the island with their lives, and they are probably thinking that divine intervention probably helped them to escape from the pirates.
Well I think that captain smollet is a better captain than Silver because you cant just make somebody do what you say by threatening to kill them like silver does but Smollett gets respect without being completely and uterly harsh to every person who doesn't do what he says and that she give him all the power he needs. When you respect others they will respect you back. Simple as that :)