In terms of your question about potential psychological benefits of being in hosp vs home, Viola - think it is very person-dependent. I had read a lot about the benefits of home birth and being in your own environment, but actually as soon as the midwives stepped into my front room it didn't feel like my environment. Everything I had heard about how in hospital you give away your sense of agency, you lose your voice etc.. that was actually paradoxically more true for me at home, somehow.
I am not a natural hostess. Our house is our private place, we only have family and very close friends visit, we are not those people who can have people drop by at a minute's notice and I am always worried about all the little things that need cleaning/revamping/renovating when new people come to our home. They were lovely when they came, but I didn't feel in charge. I didn't feel I could tell them where to sit or how to be, I felt a bit awkward as though I had the vicar round for tea when I knew soon I would be giving birth!
The noise was also a factor for me. Later on in labour, I was quite vocal. Very controlled, but vocal nonetheless. Dh said it was just standard mooing, but in my head it was very, very loud and I would have felt too inhibited to match my voice to the pain in my own home with my son asleep upstairs, knowing if he woke up he would have to leave the house.
I don't inherently "trust birth" either. I know the statistics are in favour of home birth for second timers with low risk pregnancies, but I am very risk averse as a person and I see no reason I might not be that one in a million person. One of my was also a low risk second timer, advised a homebirth as her first was nearly born before arrival (10 minutes in hospital!) but chose hospital, and it was good she did. She had an extremely rare issue with her placenta (the sort that shows up in journals, a tiny weeny risk, very very rare) and being in hospital actually did save her and her baby. It depends how you feel about that sort of risk. Lots of people can, very rationally, say "well the chances of that are small and the baby might die anyway in that circumstance in hospital"... but.. but... you can either do that, or you can't, I think?
I think it's a very personal decision. All the research in the world/statistics/studies etc can't make you feel comfortable with a homebirth if you don't, and vice versa. Good luck with your decision!