Does the ultrasound indicate any problems that would require you to be induced? I think a lot of times, doctors like to induce for almost any reason, but when you really look at the research, babies are born a lot faster and with fewer complications when they're allowed to be born when THEY want to be born, and not when WE want them to be born. But obviously, your and your baby's health has to be priority #1.
I have a friend (also with gestational diabetes) who had her first 3 babies induced. She was in labor for more than 24 hours with each of them. Finally with her last baby, she decided she wanted to do a home birth with a midwife. Her baby was born with no complications whatsoever, 4 hours from the time she started her contractions to the time the baby was born, 3 weeks after her due date! True story. She said if she had known to begin with that it just takes her body longer to "cook" the baby, she would have had all 4 at home and wouldn't have induced any of them.
I guess when it comes down to it, if there's a medical reason you feel you should be induced, then speak with your providers about it. If your ultrasounds have shown no problems with the baby, and the baby is no bigger than average, then you may not need to be induced. I think you should speak to your RN and midwife further about this and try to gain some clarity and get a plan that everyone is comfortable with.