It does sound a little like your doctor is trying to 'scare' you into an induction. Ohhh, you're small, baby's big, risk of merconium etc... is he putting the other point of view to you at all. i.e. that waiting until At Least 41 weeks is most likely to result in natural labour which will be better for you and for baby (as shown by the SMH article above). Also that the risk of merconium being in the amniotic fluid is small, is most likely to happen when the baby is stressed during labour which induction wouldn't avoid if it's going to happen at all, plus the baby is not necessarily going to have any ill effects from aspirating merconium. As I said my baby was two weeks 'late' and he did aspirate merconium, was born, threw up a lot the first night and was fine.
I'm not saying you should or shouldn't induce, the decision has to be yours but your doctor seems very keen on persuading you?