Your descriptions are pretty good, but I believe you want to consider more than just fees. Sure...when the plan is crap, pick the absolute lowest ER fund, regardless of what it is. Think of it as simply a place to store tax advantaged money that will someday go into a good fund.
At my last job, I had crap for 401k options and zero match. I put all my money into the lowest ER fund knowing that I would not be there forever. I did max it out every year. I lasted 4 years before finding a better job. The old, garbage 401k money went over to my Fidelity account and I'm lucky that my new job uses Fidelity and even gives me a small match.
