Without having read the other answers, I will say YES, YES, YES! There is SO much less chance of complications with a VBAC or ANY vaginal birth (unless there is real trauma!) than with a c-section.
Birth is natural and c-sections are MAJOR surgery.
I had both of my children vaginally- 8 lbs, 9 oz and 9 lbs, 6 oz and with very minimal tearing with the first and NO tearing with the second. For the first I was on my back in stirrups and thus the reason for the tearing. With the second I was in water and the CNM applied perineum counter-pressure so I would not tear. I *highly* recommended changing your care to a CNM if you can find one to do a VBAC. Remember, OBs are trained as SURGEONS, not in what is a natural birthing circumstance.
Also, as a last note, ultrasounds CANNOT predict the size your baby will be. Even with all the ultrasounds I had with my second (2 yrs ago) because I had a sub-chorionic bleed, they still guessed that she would be 6 lbs and she ended up 9lbs, 6 oz!! I had a friend who was just the opposite- she was a week overdue and had one of those 4-D ultrasounds and they told her her baby would be 12 lbs (this was just a few months ago, mind you- so very current technology!) and she ended up with a baby that was 6 lbs, 4oz. and they took him by c-section a week early (so so very wrong!!!!)
Safest is vaginal. It's also empowering. My waterbirth totally changed my life. I know that sounds "hippie" or whatever- but it is so true.
Editing to add- any baby's head can come through narrow hip bones IF you are with someone trained in positioning you AND the baby in the correct way to make this happen. Laying flat on your back in stirrups, it may truly never happen, but if you squat or kneel, that baby can slide right out. Let gravity work with you :)