Both of my daughters were born in a hospital with certified nurse midwives. The first was a very bad experience, the second wonderful. I would say that the main reason my first went so counter to how I had wanted it to, was the midwives. If you are sure that your medical provider will adequately inform you of what is going on & follow your wishes, I would think that that would be the most important thing. Also, with this being your second child, I would also think that you will know more of what to expect & thus have a better shot of it going how you want, as well.
With my older child, the midwives wanted to induce b/c she was nearly 2 wks past due, however there was no indication that she was stressed. If I had known more, I would not have agreed. It took 3 days of the maximum dosage of Pitocin, cytotec (a little pill that they put near your cervix to make it dialate), manually forcing my cervix open & more to get her out. I was not told & did not find out until later that the usage of cytotec & pitocin together significantly increases risk of uterine rupture. I also was not told that it is basically impossible to manually dialate the cervix w/out an epidural b/c it is so excruciating. I started thowing up from the pain when they did the manual dialation & continued to throw up for 24+ hrs until I finally had an epidural - I was only 6 cm dialated at the time. Angelina was finally born on a Sat. morning - the induction began on Wed. morning. I also was given an episiotomy w/out even being told that they were going to do it. My midwives knew that I did not want one unless the baby was in danger. I don't believe that she was, but was more upset that they didn't tell me that they were doing it until they already had. I also wound up hemoraging after the delivery due to my uterus being overstimulated from all of the Pitocin.
Needless to say, I changed midwife practices with the second. She was born at the same hospital, but was a completely different experience. My wishes were honored & supported. When it got truly painful & I wasn't sure that I could do it, the nurse & midwife were very supportive & I delivered Tessa with no pain meds having gone into labor with no induction.
I guess that my main point is that you need someone there who will tell you the truth about the consequences of any interventions and will support your desires for the kind of birth that you want. It can be done at a hospital if you are an informed consumer with a supportive practicioner.
It is better to be hated for who you are than loved for who you are not.