I have had homebirths and would definitely recommend it.
First time DD1 was 18 months and slept through the whole thing, woke up in the morning and came and got into bed with me and her new sister.
Last time, DD1 was 4, DD2 2 1/2, DD2 slept through the whole thing, DD1 woke up just after DD3 was born and came into see her straight away. We did have SIL and a friend here too so that DP could focus on me, also if you do need to transfer to hospital for anything better to have someone else rather than your DH to look after your DD. The DDs had watched some Discovery Channel footage of babies being born and I had told them that Mummies have to make a lot of noise to help the baby come out and not to be frightened, also there's a lot of mess.
I had DD2 and 3 in our bedroom I like it, low lights like a little den just me and the gas and air, had fantastic MW last time, respected all my wishes was very hands off.
MWs bring most of what you need, I had some plastic sheeting and a Asda value fitted sheet for the bed which we binned afterwards, some old towels (about 8) and some maternity pads (2 packs), other than that have your normal hospital bag packed for a) just in case you need to transfer and b) you have everything in one place so DH isn't struggling to find babygros and hats.
You can have G&A and pethidine/morphine at home and ask for some nice painkillers for the afterpains too.