I prefer bagged ice because our city water makes ice that is cloudy with an off taste.
For any drink that needs crushed ice I use a stick blender. We have a top notch Cuisinart that makes a frozen style drink as good as and better than any bar or restaurant.
It handy to have for cooking as well.
The only caveat is that you may need to use a pitcher or larger mug to accommodate the stick blender's size. The end result is always a smooth and uniform ice demolition.