Hi there,
I've had type 1 for over 30 years. Had 2 relatively uneventful pregnancies and 2 inductions, resulting in 2 normal births. One with epidural and one without. Neither baby needed to go to SCBU, but I was fully aware that it was a possibility. I had expressed colostrum antenatally, so had a great supply established and loads of syringes of frozen colostrum should they be needed.
Normal birth is absolutely possible for diabetics but each delivery should be planned for best outcome for mum and baby. There are lots of things to consider, including baby's estimated weight, previous deliveries, stability of blood sugars, other medical conditions, etc.
Obstetric/midwifery team should take the time to lay out all the options and possible outcomes. They can't make you have a c section, neither can they force you to try for a normal birth. You and your birth partner need to consider the options and be supported in your decisions.
Hope that helps x