I had DD at home - she was my first, 9lb 12 and breech! I did have to transfer into hospital a couple of hours after the birth to get stitched up from a 2nd degree tear, but I'd still repeat it tomorrow.
From my experience, a lot of people perceive childbirth as a medical procedure and hence think you should be in hospital for it - lots of "but what if..." questions got asked. What is rarely discussed are the additional risks you incur by being in hospital.
The National Birthday Trust study attempted to compare all women planning a hombirth in 1994 with comparable women planning a hospital birth They had around 5000 women in each group. To be in the "homebirth" group, women still had to be planning a homebirth at 37 weeks. They found that by planning a homebirth you halve your risk of needing a section or assisted delivery and required less pain relief. Babies were generally in better condition and required less ressusitation of any description. Breastfeeding rates were higher. Stillbirths and neonatal deaths did occur, but at below the national average and there were too few to make a valid statistical comparison.
In answer to Dragonbutter's question - they found that the babies of women that transferred to hospital from a planned homebirth were in the poorest condition of 3 considered groups (best was planned and completed homebirth, then planned hospital birth). However, there isn't a comparison with the condition of babies born in hospital to mothers requiring assistance, which would be more meaningful.
There is a more recent study out (sorry - can't remember the link) that had a different conclusion, but they did not differentiate between planned homebirth and unplanned homebirth (either very fast or mothers in denial) and made some big guestimates for some of their statistics. The study has drawn a lot of criticism because of this. There is more research currently underway (or planned very soon) that hopes to address some of these issues.
At the end of the day its a very personal decision based on how you feel the risks of home and hospital birth compare for you and your family.
That said, DH is now a firm believer in homebirth and we'd both recommend them to anyone .
Good luck