Feh. Both of the reasons she listed are baloney.
The midwife can reach the baby just fine and if for some reason she can't you are perfectly capable of bringing your own baby to the surface. But, you would be amazed at how swiftly and acrobatically most midwives can move.
She's also wrong (surprise) about the poop in the water. Your baby has already been exposed to your bacteria and she already has your antibodies. A baby born dry in a hospital is far more likely to get an infection from an airborn pathogen. Water actually dillutes bacteria. You might poop in the water, you probably will, but it is no big deal, the midwife will scoop it out with a fishy net.
Amy: Certified Professional Midwife and mom to Max (11) and Stella (6).