Someone suggested moving a table full of settings, where each column is a setting name(or type) and the rows are the customers & their respective settings for each setting.

ID | IsAdmin | ImagePath
------------------------------
12 | 1          | \path\to\images
34 | 0          | \path\to\images

The downside to this is every time we want a new setting name(or type) we alter the table(via sql) and add the new (column)setting name/type. Then update the rows(so that each customer now has a value for that setting).

The new table design proposal. The proposal is to have a column for setting name and another column for setting.
ID | SettingName | SettingValue
----------------------------
12 | IsAdmin        | 1
12 | ImagePath   | \path\to\images
34 | IsAdmin        | 0
34 | ImagePath   | \path\to\images

The point they made was that adding a new setting was as easy as a simple insert statement to the row, no added column.

But something doesn't feel right about the second design, it looks bad, but I can't come up with any arguments against it. Am I wrong?