I agree with both - just give Obama most of what he asks for (not, for example, the anti-Constitutional demand for an unlimited debt ceiling.)
Then, let it burn. I know, it sounds terrible - but as we've found in the last election, the majority of people have bought the economic theories put forth by the left - the only way we'll ever get them to comprehend is to experience it for themselves. *Any* kind of compromise deal will allow the President to take credit for anything good that results, and blame the negatives on the Republicans.
To put it another way, I'd rather suffer 3, 4, or 5 years of a poor economy than 30, 40, or 50.