Those aren't the only options, there are plenty of ways of doing both, but the Zionism is Racism motion was very badly done. The whole thing is an argument in semantics which does nothing to help Palestinians while painting the green party as anti-Semitic (even if the wording of the motion is talking about a political ideology, it will be viewed that way). The fact that the motion's promoters repeatedly said that the wording for the motion will not be used to discipline Jewish members who are associated with Zionist institutions (i.e. pretty much any British synagogue), and then fought and defeated a motion which made that explicit just strengthens that allegation.
There would have been plenty of ways to pass a motion saying that Israel is committing a genocide and that Palestinians have a right of return and to reparations for the harm caused in the nakba, but the motion passed is the party handing a stick to it's opponents to beat it with.