Having had a home birth, this is my take on it:
From conception to birth, there is no time that is more or less 'safe' for the baby. Babies who birth 'perfectly fine' sometimes die. Babies sometimes make it to the third trimester in the womb and just stop living --who knows why?
For me, I chose to birth at home because I'm a very private person. I like familiarity and had visited with my midwives several times. I'm not a 'run to the doctor' sort of person, and because I am so private, I felt that this more relaxed environment would be more conducive to laboring. (And really, I studied midwifery on my own as a hobby for 10 years or so... long enough to know that being stuck on one's back is pretty unhelpful, to say the least.)
As it was stated earlier, monitoring has its own risk of bacterial infection. Plus, due to that risk, the likelihood of using interventions is increased. I was 'monitored' however, by a midwife who had a doppler device, and was fine. However, it also creates an atmosphere of stress and imminent danger, to me, and having said this, I do wonder if my labor would have completely stalled due to being treated like a medical emergency instead of like a laboring woman.
Nonetheless, my decision wasn't based on "I don't want monitoring", but more that I was feeling confident that home birth was the right choice for us. Plus, I do live one block away from the hospital and chose a midwifery team which was well-connected with several hospitals in the area. Just as in any other aspect of life or parenting I tried to make a balanced choice based not on fear but information. Our experience was a good one.