Hi brown
Firstly, yes, if you don't want to be induced you can refuse and opt for daily monitoring in hospital, though obviously this can carry risks that you need to be very aware of. As long as you are happy that everything is fine, then you do not need to be induced.
I have been induced twice. First time with the gel, 12 hour labour, 15 minutes pushing, I found it very scarey (although it wasn't half as bad as things I have heard about since) I had pethadine which I have vowed never to have again. I also did have an epidural put in, but it didn't work.
Second induction was, absolutely perfect, I still can't describe just how much I loved it! 2 hour labour, 4 minutes of pushing, no pain relief (well about 4 puffs on the G&A), was just really really good (I know I sound a bit odd right now!!)
You are right that if the induction doesn't work, it would end in a CS, and if you are induced with the drip it can make things go very quickly, and most people do scream blue murder for an epidural. However any form of induction can do the same, and if I can get through it with using no pain relief, anyone can!
If you do a search on MN you will find many story's similar to mine, induction doesn't always mean medicalised past the point of putting a bit of gel in. I wasn't strapped to a table and constantly monitored. It really isn't as bad as some would have you believe. But I will keep my fingers crossed that you get going on your own, and if not that you have as good an experience as I did