As for the Observer, ATC, ACO thing, if you want Pilot, go for it! Dont accept becoming a Blunt due to frustration, only take it as a second if things dont work out!
Keenas,
For our overseas friends, ACO is Air Combat Officer as Navigators (in my day) are now classified. Sure, the young guy should shoot for pilot's course, but being a Nav - I can assure you - ain't "Blunt". Would happily show you my logbook.
Boris