The short answer is, yes, you can plan a VBAC!
The long answer....
I hate the term "failure to progress". Often, it's better labelled "failure to wait". And it's the doctors' failure, not yours.
Do you know why they told you to stay in hospital? It might have been that that was really the best thing to do, or it might have been that you would have been OK to go home (and possibly coped/progressed better there). Was this discussed with you, before saying No and then putting you on a drip? My gut says that your surroundings, your position and your baby's position were probably bigger factors in what happened than the baby's size.
Your surroundings directly impact how much oxytocin you produce. This is why it's great to stay at home as long as you can! This is something you can control.
Being on your back reduces how much room your baby has to come through. It reduces the mobility of your pelvis by about a third! This is something you can control.
If baby isn't in a great position, that can make labour slower and can make it harder for the baby to come out. This is something you can sort-of control, a bit. Look at "spinningbabies" and Optimal Foetal Positioning :)
Sometimes a planned VBAC becomes an RCS, but usually in those cases the family feel more in control and still find it overall a positive experience (even though not the kind of birth they hoped for). One thing is sure: you definitely WON'T get a VBAC next time if you plan an RCS.
Do you have your notes from the hospital? It might be useful to go over them and then maybe discuss them with your midwife or doctor... This might help you to process the experience and build a clearer picture of what your options are for future pregnancies and births. It would also give them some feedback, which is useful for improving maternity care. If you do it now, maybe things will have changed for the better by the time you are having your next baby??
Oh - and about braxton hicks - near the end of my second pregnancy I went to hospital to be monitored because baby's heart rate was a bit fast. (Everything was fine, btw.) Anyway, I am lying there with this belt on for half and hour, feel uncomfortable, hating being on my back and pressing a button each time baby moves. I don't feel a single BH. Before I leave I am shown the print out which has recorded SIX braxton hicks! So, if you can't feel them, they are probably still happening! Your body is amazing, try to trust it!
Search on youtube for "VBAC" - LOTS of encouraging stories on there!
Links - on CPD/baby being too big/pelvis being too small:
birthbliss.wordpress.com/2010/01/12/giving-birth-like-primal-peoples-pygmy-birth/
enjoybirth.com/blog/2009/06/29/big-baby-bull/
Hope this helps!