RE: To Key or Not To Key a Physical

however I've been approached with the thought that Option2 will index
over an index which would be less preferable to indexing over a

non-keyed

Physical. Is this a valid concern?

Not a valid concern. An indexed physical isn't the same as, say, a
"clustered index" on something like SQLServer. Even if you key the
physical, the data is still loaded into the data space in arrival
sequence, and all other logicals will point directly at the physical
rows, there's not a level of indirection there. For all practical
purposes the keyed physical works just like the physical + logical
setup... except there is only one *file object, not two. IIRC, if you
define the keyed physical on an F-spec and "forget" to indicate that
it's a 'K'eyed access, you'll get the rows in arrival sequence just as
if you'd processed an unkeyed physical.

-Walden