Consider option 3 also -- NO IRA. (Not really, I'm not saying no IRA / 401 at all... just pointing out that many of us should have money outside of a tax shelter. )
Roths and trads both get taxed -- one now, one later. If you are in the same bracket now and later and you consider them from a marginal tax basis (last dollars earned), they are mathematically equal -- no difference whatsoever. This is not a well known piece of information and many dispute it until they go through the math.
Back to the "no IRA" part of this: When you retire, You can withdraw unsheltered long term capital gains at either a 0% or 10% or 15% bracket. This is a big deal as compared to an IRA distribution that would be withdrawn at a standard income brackets (0%, then 10%, then 15%, then 25% or higher bracket). Since some of what you are withdrawing is return of principal, you can actually take out quite a bit of money without paying much tax at all.
Dividends are similarly advantaged.
The whole IRA (both types) and 401k programs are good, but I think the main advantage of them is that people use them. They don't really add all that much to the overall return folks get if they compare them to long term capital gains associated with a low turnover taxable account.
So... I do a mix. I have some trad IRA/401, and have some Roth and I have some unsheltered. I plan on withdrawing the unshelted stuff first, then the combo of Roth and trad in order to minimize my taxable income in retirement.
Superimpose on this a few other things -- if you have high income producing investments (some REITS, junk bonds, etc), consider putting them in a sheltered account -- otherwise they are taxed as ordinary income.
For long term stocks and certain other things (real estate, small businesses) consider no tax sheltered account and use the already-in-place beneficial tax treatment described above.
For CDs and the like, right now anyway, it doesn't matter. You don't make enough money on them to make a hill of beans difference in your taxes.