| I've had 5 children. So far none of them are diabetic, and their father is a type 2.
I remember reading somewhere that you have a 4% chance of passing T1 if you're female, and 7% if you're male. I really wouldn't worry about the risk of passing diabetes on to your children, however if it does worry you, adopt!
As far as bigger babies go, if you're well controlled and keep your A1c under 6.5%, then you'll probably have a "normal" sized baby. Around 7.5# is normal these days. Though, genetics is a factor there, how big were you and your partner at birth? How big were your parents, etc.? My babies were all small. The smallest was a 32-weeker preemie at 4#8oz., the biggest was 3 days overdue at 7#5oz. I was well controlled, A1c was never over 7%.
One more thing, when the baby is born, he or she will more than likely go hypo after a few hours. This is because they are used to dealing with your highs and using your insulin. Once they are out, their working pancreases go to work to get rid of the extra glucose in their system. I'm very pro-breastfeeding and most hospitals will immediately give newborns glucose water if they see the hypo... I never allowed artificial nipples and just nursed the babies. They were fine after nursing.
Again though, if it scares you enough that you'll possibly pass on diabetes to your offspring, try adoption. Of course, you never really know what you get in an adoptive child's family history... | 
