The fact that the first line on Dutch's card doesn't include the word "may" is not really a basis for commitment to the ability.
Dutch's ability states that you must choose another friendly ship at Range 1 to 2. If there are no other friendly ships at Range 1 to 2, then Dutch's ability fizzles.
In the example given in the original post, Dutch must either choose Wedge or the Rookie. That ship then becomes the chosen ship. At this point, you can not change your mind, you have chosen the ship.