Fiona - I have heard good and bad things about the public hospital, but admittedly most of them have been bad. I have top level private health insurance, so I figure I pay good money for it and might as well make use of it and deliver in the private hospital.
I completely understand your feelings on this. However is it worth having a nicer room if you are bullied throughout your pregnancy by this OB and pressured into a CS you don't want? Have a look round the public hospital, and speak to some of the staff there. You might be pleasantly surprised. I know that even with private health insurance, given the choice I would give birth at my local hospital any day of the week. Just don't discount the prospect of birth there before you have seen it for yourself.