Concrete is needed because its cost/lifespan benefit outweighs its negatives. In the USA where they have near unlimited space to expand small towns into with wooden structures it might not be the best resource to use given how easily wooden structures can be repaired but in denser Asian and European countries space is a luxury so we have to build upwards. Concrete can be pumped to build high-rise structures that might otherwise never get built.

To truly eliminate concrete from urban environments we would need to go right back to planning and look at how concentrating amenities in the centre is a terrible way of building. By adopting the 15-minute neighbourhood idea we can build hubs, making cities more a conglomeration of villages. This would allow us to more evenly distribute population density and eliminate the need for hive buildings.

Personally I am an advocate for option 2 :)