Those are hardly the only two choices available.
Once you make a state religion possible, you open the door for oppression of religious minorities.
Oh, you mean like the Branch Davidians?
A state church would not necessarily entail religious persecution. State religions are the norm, not the exception in the Western world. (See above for examples of U.S. states that had official state churches.) Besides, my amendment would only allow the states (cities, counties, etc.) to establish a state church or not according to the will of their legislatures; no entity would be required to do so.
Geez, this guy could give Clinton weasel lessons.