I came across a fabulous post on the risks of induction. The woman who wrote it is a midwife in Australia, and her comments about risk struck a deep cord with me.
"Risk is a very personal concept and different women will consider different risks to be significant to them. Everything we do in life involves risk. So when considering whether to do X or Y there is no ‘risk free’ option. We choose the option with the risks we personally are most willing to take."
Although she doesn't have anything about diabetes, you should browse her website if you are curious about the real risks associated with pregnancy and childbirth.