If they are truly concerned about placental function then you should be having regular monitoring (I mean every day or two). Has anyone talked about this? I think to make your decision you need to know just how serious your placental issue is. It doesn't sound at all like your body is favourable for induction, but I do understand your worry about leaving bub in there too (have had an IUGR baby myself). Perhaps the placenta is trotting along okay, and it's not too bad, they're just being cautious?