I could write a book on this topic. In fact, quite a lot of people already have!
Ina May Gaskin, Michel O'Dent, Sarah Buckley, Sheila Stubbs...
My first baby was "stuck" (forceps delivery) and my second baby was born at home. Pretty obvious really, I do NOT think it is "foolish" to birth at home, even if your first birth was assisted. Frankly, I put a lot of thought and consideration into where my second child would be born (first time I just assumed hospital, because, well, that is where everyone goes to have a baby, right?) and I think this is what ultimately made it a better experience second time - ante natal education and preparation.
The truth is just BEING AT HOME reduces your risk of various complications and interventions.
A few words about SIZE:
So many doctors say things like "he was too big too get around your pelvis" that I can't help but feel skeptical at this. CPD (Cephalopelvic Disproportion) is rare, yet it is diagnosed all over the place! Drs insist that the mother must have a caesarean birth because her baby is just TOO BIG to be born vaginally.... and the mother then goes on to have a perfectly safe birth AT HOME next time.... often with (gasp!) an even bigger baby! Not saying it's the case with you at all, just throwing this out there so you know why it might be met with skepticism.
Here is the thing: the baby's size is not really THAT important in most cases. Can I ask - do you have diabetes? And how big was your baby?
Much more important is your environment
Is it familiar, homely, comfortable? are you calm? relaxed? undisturbed? do you feel safe? do you feel unobserved? do you have privacy? This is the environment you need for birth. You can sort of manufacture this environment in a hospital, but most of the time it is pretty hard. For a lot of people (not everyone!) this kind of environment is: their home.
MANY women find that their labour progresses beautifully at home. They move into hospital at the proper time and suddenly it slows or stops completely. This is because just BEING in the hospital has caused a release of adrenaline in their body and this has slowed things down. This is a survival mechanism: if there are predators around you want labour to stop until you are safely in your nest or den. if you don;t know the place well, there MIGHT be predators around, so the same thing happens. If there are people there you dont know well - same result. You might know, with your logical brain, that those people are there to help, but birth is not governed by the logical art of your brain.
Another key thing here, is that when this happens, your body is sending blood (and therefore oxygen) to your heart and lungs, ready for "fight or flight". Your uterus and your baby are not used for fight or flight, so blood is directed away from there to other major organs. By staying at home, this pesky adrenaline release is avoided and birth is more likely to progress smoothly and unhindered.
Another important factor is your position
Are you upright? Can you move? Are you in tune with your body and moving intuitively? Your baby NEEDS you to move so that they can move into the best position to be born. You work together to meet one another
Your baby is like a key, and your pelvis is like a lock. If the key isn't sitting right in the lock, then birth will be more difficult. If you are on a bed (not moving) then you aren't working with your baby; you're expecting him to get in a good position all on his own. If you've been numbed it's worse, bc it's harder to move around on the bed even, unless you have lots of help (and sadly a lot of the time the epi is viewed as a replacement for good support, which is a travesty!) Add to this the fact that if your baby is affected by drugs, they are less able to do THEIR part of the job. If you are pushing and pushing with the baby at an awkward angle... it's only going to make matters worse. A key clue for me is that the dr said your baby was too big to get AROUND the pelvis. When you are lying on your back, you have to push your baby round a kind of U-bend, uphill. It's bloody hard work! The mobile part of your pelvis is the back of it, and lying on it makes it about 30% narrower and much less flexible - harder to get a baby out of!
The key thing most of us want, is to avoid interventions, because while they are sometimes necessary, often they aren't, they just introduce risk and the need for MORE interventions, each one carrying MORE risk and the need for MORE interventions... and so on, "an intervention cascade". Often ending with a scenario pretty much like yours. The first intervention, the first deviation from a biological norm is: leaving your "nest".
A pattern I've noticed: the more time you give yourself to be exposed to the idea, the more it'll grow on you. Homebirth is a bit fringe, but it's ultimately appealing because at some point, biological imperative will tip the balance against cultural norms.