I don't have time to research why another exchange is actually more "trustworthy"
I am also following the idea that going with #1 isn't a bad choice. Isn't Gox too big to fail.... ughhh exchanges are Bitcoins biggest problem
You got it all backwards.
1. "Too big to fail" implies you are so big that the government will bail you out rather than allowing you to shut down. Mtgox definitely doesn't match this definition.
2. Trying a lesser-known exchange is likely not worse than using one which
is known to be bad.
hint:
The sole and only reason to buy there, is because you already have fiat stuck there and you want to get it out ASAP.
About selling, if you are optimist you can say that some people value that the risk of Mt.Gox defaulting plus the time they have to wait without their money is less than the price difference with the other exchanges.
If you are pessimist, you could say instead that they are simply stupid and do random things without really thinking about it.
Still, since there's no reason at all to send fiat there to buy BTC, yes, I agree it makes no sense for Mt.Gox to be still in business.
