Having had a HBAC, I also feel that it is a safe choice. My mw's had an underwater dopplar, and checked babies heart beat every 10-15 minutes or so. It has also been proven that intermittent monitoring is as safe, or safer than continuous fetal monitoring that they would be doing in the hospital. It is safer b/c a midwife will be with you the entire time, watching and supporting your progress. In the hospital, they will be reading the machine from another room. You will recieve much better, hands on care from a homebirth midwife. Your birth will be easier and faster being in an environment in which you feel comfortable.
I know that it is hard to go against the mold and do something that most people say they would be too "scared" to do. But you have done your research, you know the risks are low, and birth is safe as life gets. Remember that our country is 27th for infant mortality, and that around the world, midwives deliver 80% (I think) of babies. So hospitals do not equal safe!
Something else that helped me is I listened to the hypnobirthing affirmation tapes. It went a long way to giving me confidence in my body, as well as Ina May's newest book. Good luck to you!