Thanks for all the replies ladies! It's really helpful to hear all your thoughts and experiences, pro and con.
I'm inclined to prepare for a drug-free birth, for two reasons. I've read some of the same stuff as Jewlz about the possible disadvantages of having drugs in labour, so I'd like to try to go without if I can; but also, it sounds like it can be hard to get drugs during labour if you haven't chosen them beforehand, so I wonder if it's best to prepare for not having them anyway. This goes to the question about midwifery centres at hospitals -- Aless, actually it sounds like you will be going to the same hospital I've chosen -- what I have heard is that if you are in the "home birth centre" at the hospital and want to get an epidural or such, you have to be transferred to the medical wing. This can take hours, because they are so full up all the time, and so often you deliver before you are able to get the drugs.
The home birth centres sound great in theory, which is why I was so happy to be going to this particular hospital, but from what I experienced last week, I'm a bit spooked that the one at my hospital might not always work as well in practice. Again, not to go into excruciating detail, but it sounds like getting admitted into the home birth centre can take a while (the OB said they often have women in early labour hanging out in the regular waiting rooms, which are chaotic) and the staff just seem really overwhelmed. (when I was in, it took 15 hours for me to get in to see an actual OB, even though they thought I had a serious medical problem) I had a really positive experience there with my scans, but being there as an inpatient was eye-opening.
The other hospital I would consider has a very good reputation for its midwives, but I've heard so many horror stories from friends about the hospital itself that I'm not sure what to think (a friend whose malaria was diagnosed as swine flu, another who was sent home with a broken arm and told to take paracetamol...) But it would be their very good midwives who would be attending me at a home birth, which is reassuring.
Really, my main worry is something going wrong. But I am less than 10 minutes from the hospital, and if the midwives are very good, hopefully they would catch any problems as soon as possible?
I know it would be hard to live with myself if we had a home birth and something very tragic happened; but something terrible could happen at the hospital as well, and then I would be kicking myself for having a hospital birth after being made aware of all the potential problems with that route.
Anyway, I'm sure I will go back and forth about this until I have to decide, so I really appreciate hearing all your thoughts