Firmware can't be downloaded over the air.
*228, option 2 downloads the latest PRL, a list of cellular SYSTEMS, NOT INDIVIDUAL TOWERS, that the phone will attempt to register with if outside your home area (your city).
*228, option 1 downloads the PRL and programs your phone with its home system ID, phone number, and other parameters.
You only need to do option 1 the first time a phone is activated on your account. Option 2 just keeps the PRL up to date so you have all the advertised coverage when you take your phone out of town.
To change the phone's internal software (firmware), you need to bring it to a technician, who will re-flash it using a data cable.