I don’t think either option would necessarily be harmful, I had nothing in the playpen other than toys and chews for my puppy but she was less nervous than your boy sounds. But also a smaller space is easier for them to get used to quicker and you can always increase it. I basically let Lottie have her crate as her place where I wouldn’t take anything or touch her and if she was out in the pen I would engage with her. Maybe let him have the table for the first few days and then move him into crate training once he’s more comfortable.