The whole measuring thing is completely inaccurate - the height of your fundus changes with fluid levels, baby's position and also size - so most Obs don't even measure. I know mine never bothered. 40 weeks measurement for one baby will be 6lbs and for others it will be 8lbs - there is no perfect measurement as our bodies are different shapes and grow babies to accommodate based on our genes.

Induction increases the risk of uterine rupture as Sherie said. So he wont induce you.

You really need to get reading the articles on the main site to allay your fears:

The Truth About CPD (Small Pelvis)
Pelvises I Have Known and Loved
Birth As A Bowel Movement
VBAC - On Whose Terms?
VBAC - What to Expect