I have experienced drug-free labour (first time round) and labour with an epi (with my twins). Bear in mind that I didn't WANT the epidural (was sort of railroaded into it on account of having two babies on board) which undoubtedly affected my perception of the whole experience BUT I hated the epidural. It was horrible. I hated being stuck in the bed and not being able to do something simple like just shift my weight in the bed was awful. I felt like labour was happening TO me and that it was something I had no part in.
But my biggest complaint was in relation to after the birth. you can't get up and shower or walk to your room or lie in bed and cuddle your baby because you're still all numb. And remember you'll also have a urinary catheter in, as well as a drip in your arm. So you're all attached to wires and tubes and it's very uncomfortable. It makes the whole post-birth experience very clinical and medical rather than the special, warm, fuzzy experience it was when I had no drugs.
as for the needle going in - well, they put it in your back of course - so you can't actually see it. I didn't even look at the needle because I just didn't want to know.

I think it's a great option when it's necessary but try and arm yourself with some coping techniques that will hopefully get you through instead.
FWIW, before my first labour, when I told DH I wanted a drug free birth, he read some of my books and said "I don't think you can do this." (how's that for a vote of confidence, eh? don't worry, he was sufficiently chastised!) but I guess what I'm saying is I'm not exactly tough when it comes to pain. My DH thought it was a joke that someone like me could do it without drugs but I did and it was awesome. So don't think "I'm not good with pain, I won't be able to do it." It's sooo different from any other kind of pain. You just might be ok.
Good luck!