I am with your parents on this one. It sounds as if your family is not suffering financially, and can handle your not earning $4,000 over the summer.
I would ignore this one also. Both options sound very good to me.
I think that this can be very helpful when you get around to applying to universities. I would be tempted to discuss both options with your advisor before you make a choice.
I think that either one sounds really good. You could go with whichever you want to do.
I do like the idea of your being able to also do your community service project at the same time. It is important to follow up and complete the valuable projects that you start, or at least make sure that someone is going to continue the project.