I understand that you are frustrated and angry, Michael; however, whilst I agree that Option 2 is obviously the most desireable - if it can be delivered before 2015! - I think too much irrational negativity is put on the location of Option 3:

Willow Way is only 5 minutes or so further walk away from the present site.
I cannot see how a pool located there can have any more detrimental effect on the viability of the Crystal Palace pool than a pool some 400m further into SE23.
I don't see how you can think Forest Hill town centre will lose trade seeing as the Pools have been closed for some 4 years already.
Although Willow Way does not have frontage on the main road, it is not quite the back-street you portray.
I thought from the presentation slides that the housing designed for the present Pools site looked high quality and not overbearing to the existing buildings (or to Derby Hill).

As, I said - I like Option 2; I just think that people are being overly negative towards Option 3 when this can more speedily deliver a pool to Forest Hill (whilst not destroying the existing Pools' Victorian streetscape).