Beauty is, as they say, in the eye of the beholder. I see nothing wrong with the 'lawn chair' effect. I think we have all been conditioned into thinking that it is something to be shunned. I don't see why.

The tartan is quite light, almost a 'dress' tartan. Pleating as in the second attempt would give a very light kilt - possibly too light. Whereas, pleating as in the first attempt will give a darker contrast, front and back.

I think that the sett is to small to effectively pleat to the sett, so I would go with first picture.

Regards

Chas