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Neither one is going to be a 'good' or even 'great' fix for this kind of problem. The reason I use only hay is that it smells better in the coop, the birds like to scratch through it more and can actually eat it if they want to, it often contains *grass* seeds and once it's spread out wherever one needs it spread, it *will* grow grass there. Even if you don't need grass growing, it actually breaks down and gives nutrients back to the soil, so long as it's not piled too thickly over an already established grass growth, a good 'soil' won't be near as 'muddy' as just nutrient-poor dirt. Walk into some old woods and try to find a muddy spot like is being described by some of these folks near their coop hatches and doors. All that detritus builds up and breaks down into the mud/dirt...the 'mud' is a good ways below all that yet just a couple inches down you have a nice 'soil', similar to potting soil. Wet some potting soil and grab a pinch and try to tell me it's a 'slick' as mud. Straw does none of this (the use of it in coops for flooring/bedding is my *opinion, the rest is fact/experience).
It also doesn't matter which is used in 'muddy' spots that the chickens are always around...that mud is going to stink whether straw or hay is spread there or not, it's just that in my own experience the straw will eventually lay down roots and grow something at the very least, whereas straw will do nothing but sit there like a lump on a log and keep holding the smell there because it isn't breaking down like the hay does/will.
I went a whole year last year without chickens (first time that long without chickens in 25+ years). Then early this year I got some chicks and figured I'd better go ahead and put up some fencing around the hatch door for when I let them out to start to see the outside world. I knew they'd eat up all the grass, but there was nothing else I could do in this particular situation. Once the grass was gone, and it started to get a bit muddy when it rained, I started to spread the hay from the coop in the area. I now have grass growing back and I can walk in there without knowing I'll be doing an ice-skating rendition across the yard. It's still slick, but not like it was or could be, and I can *see* the grass growing, even now in the cold weather (though in Jan and Feb it'll stop growing for certain, but the ground will be hard then anyway so no problem...I planned all this out according to how the weather works here where I live and the place I put the coop and all...just gotta sit down and look at things and 'see' it in the rainy and winter seasons is all *BEFORE* even getting chickens. Before we actually moved in, I came over a few times and asked the previous owner to let me walk the property so I could figure out where was going to be the best place for a coop and run). BTW...once my birds are grown and are laying age, I take down the fencing that makes a 'run'. There's no need for it (in *MY* situation) since momma hens know far better than any human how to take care of their chicks, what they can eat, and when to warm them up and where to take them during the day outside the coop.
IMO, if a person hasn't the room to let their birds free-range outside of a 'run', the best thing they can do is pour a slab (do it correctly - sand and/or gravel base, concrete no less than 4 inches thick, matting in it to hold it together after it dries, footers, the whole nine yards. If it's not done correctly, it'll break up in no time and be a huge mess. It'll cost a little more to do it right, but it'll last a loooooong time), this way they can get a square-nose shovel and scoop the poop and spilled feed easily and then wash it down with a hose. If you want, you can even spread some hay on top of the slab though with the 'slick' surface slab, the hay (or whatever you use) will slide around far too easily.
Personally though, I'd do like I did for my mom at our other house we moved from (my brother had poured a slab for a run but didn't know what he was doing and when I finally got home from Israel a month later it was already breaking apart, had a slope that was way too steep, and looked like a mold of the top of a stormy ocean with waves all over the place)...I poured the slab (I used to be a construction carpenter building schools and warehouses and the like before I injured my back) but instead of leaving the surface slicked, I gently 'roughened' it with a push broom. No shovel is necessary with this surface, just the hose, then use anything you like to pick up the washed-off poop over on the ground where you sprayed it toward *after* it's had a chance to dry at least a little bit. The slightly roughend surface gives the birds traction and, if you wish, you can still put down some hay (or whatever) and it won't move quite as easily when the birds scratch around in it and the hose won't be needed nearly as often. Just broom up the hay (or whatever) into a pile and scoop it out into a wheelbarrow or however you're going to do it with a shovel or your hands. Make sure you pour the slab so it's at a minimum of 2" above the ground around it and that you have a quarter inch to a half inch of slope one way (so the rains and water-hosings will drain off it and not puddle).