CRAN
I go with your second option too, for training, private and embryonic commercial flying. However add a diesel motor to give you that range and remove all the mag drop and carb icing problems of the present fleet.
And why not go for an avionics/systems suite like the Eclipse Jet? The "Avio" set-up that they are developing is light, cheaper than conventional instruments and gives an order of magnitude improvement of the information presented to the pilot. The glass cockpit would make an easier transition to the big birds that your trainees will eventually fly.
Umm looks like I've steered the thread around to "What about small helicopters needs fixing". Sorry pardon.