Earlier quoted context omitted.
The former. Even though it's 355 characters, at least it tells me it's a Google maps link. Which the shortened version doesn't. There are some situations where URL shortening is arguably useful. But there's absolutely no reason why "microblogging" should be one of them.
Spoken like a person without a Twitter account.
At the very least, Twitter could only shorten URLs when messages go out via the SMS gateway, and not universally. All they'd need to do is count any valid URL as 20 characters (length of a bit.ly shortened URL) for the purpose of the limit, while preserving the actual real URL up until that limit actually mattered.
The sad and ironic part is that the 140-character limit and the URL shorteners it spawned will probably stick around, due to Twitter, far longer than Twitter-via-SMS does. I don't know many people who even use Twitter via SMS anymore; it was a cool feature initially, but it's being quickly obsoleted by smartphones that can access Twitter via much more user-friendly interfaces via TCP/IP.
"140 characters" is likely to become the "4 feet, 8-1/2 inches" of the Internet. Totally arbitrary, far from ideal, nearly impossible to change.