Re epidural - I only had one in four labours and it was a complete waste of time as I do not respond well to local anaesthetic but was in too much pain to explain this. Hence, I was not locally numb enough for the epidural needle to go in without me feeling it, hence I winced every time the anaethetist tried, hence, when she finally got it in, it did not work. So all in all, a complete waste of time.
But that is just personal experience. I am sure others will give you the pros and cons better than me. The basic pro is you are supposed to lose all pain, but one con is that you also lose the sensation of knowing when to push so you have to rely on the midwife to tell you when rather than responding to your own bodily urges. Also, you have to have a catheter put in as you can't feel when you need to urinate. This meant I had to stay in hospital longer than I would have otherwise done as they would not take the catheter out for 24 hours, plus the next night.
Re internals: I kind of know where you are coming from. I don't usually have a problem with smears but I did not have one until after my first birth so maybe I was a lot stretchier by then! I did find internal examinations painful though in labour. In fact, I got given gas and air for one! I am not sure whether you need to have one. They tell the midwife how advanced your labour is, but I never really felt they were important in the whole scheme of things. Perhaps discuss this with your midwife and see what she has to say?
You don't need much more than you listed in terms of items. Baby clothes, loads of nappies (if using disposables, get more than you would ever imagine you might need!) a place for the baby to sleep, a pram (might also be the bed) a carseat. If you are not sure if breastfeeding is going to work (it probably will!) you could buy some ready made babymilk to cover you in an emergency rather than buying the bottles, sterilizer, milk powder etc. If you need all that later, better to get it then.
Oh, one thing: loads and loads of sanitary towels. You will need tons! And I always remember my poor dh having to go out to buy some when mine ran out, and having to ask a shop assistant for help - poor man.