This sounds so good. The Obs should know better, especially with a midwife present, but didn't, so yah boo sucks to them. On the other hand, yay for decent midwives. Yours sounds like a gem, and as others have said, she wouldn't suggest a homebirth if she didn't think it were a feasible, reasonable option.

The reasons you've given for homebirth are pretty much what my reasons were, and would be again if I were ever to do it again.