Ethical Dilemma

We're at a bit of a crossroads, here, and I'd like to hear some opinions from you all.  The plan all along has been to sign a non-contingent contract in our #1 neighborhood.  Well, a few things have come to light that make our lot choice significantly less-than-desirable, and there are no other open lots in the neighborhood.  That leaves us with three options:

1.  Build on the undesirable lot in the #1 neighborhood.
2.  Move to another neighborhood where we can get the exact same house on a pretty good lot for the same amount of money, but farther away from where we really want to live.
3.  Bump somebody who is contingent off their lot to stay in the #1 neighborhood.

None of those options is particularly appealing, but #3 is the worst.  I can only imagine how it would feel to be bumped off, especially since the only three sites left aren't great.  At the same time, we don't particularly want to drop this kind of money on less than the home of our dreams, because this will be our forever home.  I know I've read at least one blog that mentioned being bumped, but I don't remember whose it was.  If you got bumped, could you chime in?  If you know someone who did, could you point me to them?


**Update**
#3 isn't going to be an option after all, the SR has confirmed that there are no contingencies remaining in the neighborhood (it's almost complete, so I guess I shouldn't be surprised).  But since this hasn't come up on any blogs that I've read, please chime in with your thoughts anyways...we might help someone else down the road!