Do you just want to use Subnet2 for NAT purposes? If so, that's easy; no PBR. Just as you were imagining in your Item 2. You need to have your upstream next-hop gateway (aka "the thing that is your default gateway") unicast route Subnet2 to your cluster VIP:
# 192.0.2.0/24 is your Subnet2; 203.0.113.254 is your cluster VIP
# 203.0.113.0/24 is your current ISP-facing subnet; e.g.: 203.0.113.1 is your default gateway, this router
ip route 192.0.2.0 255.255.255.0 203.0.113.254
Now just configure host/network objects with hide or static NAT as per usual. No ARPs to publish, no proxy arps to mangle.
The only reason "arp" and "proxy arp" are truly ever needed is to just get the packet into the host's OS interface for processing. That's all these things really do; "give me the packet", they say. Once the host OS has the packet, it does its normal packet-processing thing. That's what the unicast route from the ISP uplink does; gives you the packet (that's how routers work anyway).
I've done this countless times on single gateway, cluster, and VSX VS.
For extra credit, ask yourself "can I use the network ID and broadcast IPs in this manner?" (I'll leave that as an exercise for the reader).