

I personally prefer the *cropped first image.
As a quick fix I would adjust the curves (a gentle "s" is all) and, yes, sharpen it (or, in this case, stick with the original). If you want the "dreamy effect" of the gaussian, try this instead: duplicate the layer the original is on, desaturate it 100%, and set it to soft light around 20-30 percent (play with it). Add your gaussian to that layer. It's not for all images but it'll give you a gentler gaussian that doesn't just make your entire image look oof, and will boost your saturation/contrast.