When the page loads and when you select one option the rest of the selects are rebuilt and the first option comes from the config array generated in Mage_Catalog_Block_Product_View_Type_Configurable::getJsonConfig().
Look for this line:
'chooseText' => Mage::helper('catalog')->__('Choose an Option...'),
I find the whole XML thing difficult so I am sympathetic to your cause here.
It looks to me like there is a discrepancy with your class name and your block XML
ie
class Crusader_CLHomePage_Block_Qwerty extends Mage_Core_Block_Template
and
<block type="core/template" name="homepage" template="crusader/home.phtml">
<block type="crusaderhome/qwerty" name="homeads" as="homeads" template="crusader/homeads.phtml" />
</block>
Let's start with the block type and work backward. I think here I would expect to see something like
<block type="crusader_home/qwerty" ...
and that type would refer Magento to the class
Crusader_Home_Block_Qwerty extends Mage_Core_Block_Template
Continuing to work backward on this tack, the file app\code\local\Crusader\CLHomePage\etc\config.xml would need to be modified to something like
<global>
<blocks>
<crusader_home>
<class>Crusader_Home_Block</class>
</crusader_home>
</blocks>
</global>
It points Magento to all classes starting 'Crusader_Home_Block_*'. And now I think you need to rename your module Crusader_Home instead of Crusader_CLHomePage and change the folder names accordingly...
AND / BUT I strongly recommend you change your module name. Only ever use one capital letter at the start of the module name not three and don't put capital letters in the middle of the name either.
You may want to look into some of the tools available for generating modules. I find them very useful for avoiding typing errors. I use this one by the very clever people at MGT Commerce (it has simplicity on its side) and this one is all-encompassing and an astonishing piece of coding by Silk Software.
***EDIT following comments below
Additionally based on the error log I think the problem is that Magento can't find your class file. So double-check the caches are refreshed or off, particularly XML cache, and that the compiler is off or re-enabled.
Best Answer
Magento 1.8.1 removes Google Checkout due to Google announcing the product's end of life in November of 2013.
Any extensions depending on the presence of Google Checkout modules or layout in Magento may prevent your upgrade to 1.8.1. I recommend in the time-being that you either contact the vendors of those modules or you forego the upgrade. Modifying the modules directly would either void your support contracts with them or cause yourself other issues.
To 'bring forward' the Google Checkout module from 1.8.0 to 1.8.1 little more is required than to copy the app/code/core/Mage/GoogleCheckout module, layout, adminhtml- and frontend- theme files; though I do not recommend you to do this.