I've had five children... All on MDI. None were over 7#5oz and all are healthy to this day.

(Okay, one has a different autoimmune disease, but I don't count that as anything but chance, since she is healthy except when her disease flares every year or so.)
Eat right, count your carbs, adjust your dosages as needed, check your bgs more often, and enjoy pregnancy.
Personally, I don't allow induction unless absolutely necessary for the baby's sake. Only one of mine was induced and that was because she was 2 weeks overdue and it was the worst experience of my life... (Of course, I am also one of those "crunchy" people who don't believe in medicated labors or c-sections, so don't listen to me if you're of the belief that OBs know best.)
Oh, and breastfeed...it helps the pregnancy weight go away and it is so very good for the baby!