Here is ACOG's statement saying that if a mom has had 2 CS then she is still a candidate for VBAC. I can email you actual guidelines if you want, let me know.
Some good reads.....
The Thinking Woman's Guide to a Better Birth--Henci Goer
Ina May Gaskin's Guide to Childbirth--Ina May Gaskin
Gentle Birth Choices ---Barbara Harper
The Business of Being Born
My opinion is, your opinion is right, you could have turned her with more time, and maybe the same amount of time, but with someone more skilled at recognizing EARLY on in labor the malpresentation. Like a really great MW or Doula. That was our problem last time, and we were going through MWs, so I'd be sure to interview a lot of careproviders and ask them what their knowledge is on baby presentation, and how they detect it, and how soon, and how they turn baby, and how often that works. I interviewed 9 before choosing.
CONTACT ICAN!!! Even if there is not a chapter in your area, call the next closest area and talk with their leader. There are amazing resources and amazing women there and amazing help to help you on your journey.
I think it's totally possible, I'm watching this video now by the way....http://vimeo.com/5648654
PM me if you need anything!
Oh, and YES it is possible to VBAC/HBAC, and I think it's wonderful, and NO YOU ARE NOT CRAZY!