[X] Plan: Statehood Never, Occupation Forever
-[X]Initiate a military crackdown against the white supremacists.
-[X]Rely on Unionist and abolitionist volunteers.
Someone had to put forward a plan that doesn't take the 'industrialize the South' option, and it might as well be me!
I definitely see the appeal of the Hammer and Nail plan, but I think in the long run it'll be a hard sell in Northern politics. Like OTL, the government's gonna have to come up with a shitload of money once peace really sinks in - between debt, war pensions and the cost of Reconstruction, there's gonna be a lot of moaning and groaning. Ending an expensive military occupation is going to get very tempting very quickly for politicians of all stripes.
There might be similar grumbling about the economic makeover option too. Reworking the entire Southern economy means diverting significant amounts of capital from the North to the South. Both the Great Lakes steel barons and the cattle/grain/whatever types of the West would not be happy to see U.S. dollars going to steel mills in the South instead of laying down railroads in the West.