Hi Jenie,
I'll answer your questions in a different order if you don't mind so that you can see a chain of events if you like.
When you mentioned that the head would "bob away", that is a sign that the baby's head has not engaged as yet. It is quite common for women to come to hospital thinking they are in labour because of painful contraction but often these contractions are 'pre labour' ones which, although they are painful, are the body's way of preparing for labour. I would say that your previous admissions were prelabour pains and that the head was not engaged. There is no need for a scan at this stage unless the baby was facing the wrong way or the head was no where near the pelvis.
The prostin gel you were given obviously put you into good going labour so you were probably close to going into labour on your own anyway.
It is not uncommon for baby's bowels to move in the womb (meconium stained liquor) when you go past your dates. Sometimes it can be a sign of distress if the heartbeat shows decelerations on the monitor tracing. Often there is meconium but no distress of the baby at all. If there is a lot of meconium seen in the waters prior to delivery, a paediatricain is called so that the baby's airways can be cleared at birth before the baby has a chance to 'breathe in ' the meconium (meconium aspiration). However, babies actually sort of breathe in the womb anyway and the meconium can already be in the lungs prior to birth. Usually the paediatrician looks down the baby's throat with a light to see the vocal cords. If no meconium is seen then it hasn't gone into the lungs. If a baby comes out screaming there really is no need to look down because they would not be able to cry like that if there was a problem with the meconium. You can tell by the shade of the meconium whether it is fresh or old. I presume yours looked like old meconium hence the midwife saying it looked like over 24 hours old.
It is better for the baby actually the longer the waters go without being broken (intact membranes), even if there is meconium. Intact membranes cushion the baby during contractions and it is les painful for the mother.
I think it is ridiculous that someone said the baby might have died had you not been delivered that night. It is not uncommon for a baby to have the cord wrapped round the neck (all 4 of mine did). Some babies have really long cords and they are wrapped round the body and limbs as well.
I have seen true knots a few times. The knot occurs because of movements of the baby in earlier weeks. The baby may have moved to breech and back again and the knot has been made as the baby has swum through a loop. The cord has blood vessels with thick jelly round them to protect them. Knots can be present that cause no problem for the baby. Sometimes though, the knot can be tight and the baby's heart rate slows down a lot during contractions. If the tracing of the heartbeat shows a significant problem then the baby might need to be delivered by caesarean.
Being induced is actually very stressful for a baby. You laboured very well but had they tried to induce you say a week earlier, the gel might not have worked and you might have needed to have your waters broken as well and be put on a drip. When the waters are broken the baby is not so well cushioned and because of the cord round the neck and the knot in the cord, your baby would have been much more stressed. It is a good thing that your waters were not broken which some hospitals automatically do when you are getting induced. How was your baby at delivery? Any problems?
Hope I have answered your questions. Let me know if you think of anything else