Mama Swan that's so crazy! I never had any idea that contractions could possibly be more painful before the membranes rupturing, every other woman I've ever known had more painful contractions after. I guess that every labor and birth really is different then.
The US really does have a backwards medical system and maternity rights/leave/benefits are even worse. We're the only first world country (and the largest country) in the world that does NOT have guaranteed paid maternity leave.
I would love a water birth, I really wanted one last time. We just don't have the option available though, I couldn't find a single birthing tub unit in my state even, let alone near where I actually live. I also don't trust the midwifes around here, I've known too many women that tried to go for home births in my area and either had to be rushed to the hospital for an emergency c-section and even one woman in the next town over that actually lost her baby trying to do a home birth.
I do not want to discourage anyone from getting the home birth that they want, I would just suggest doing lots of research on the midwife practice that you're looking into if you're in the US. Try to find real success stories as well as real statistics on how often their home births go successfully. Ask them directly if you have to and trust your instincts. Also be aware that in the US a lot of insurance companies won't cover the cost of a home birth with a midwife so plan for at least $3,000 out of pocket (I actually got a quote with a midwife when pregnant with DS and this was about what it would have cost me).