Is it going to warp young kids to see their mom give birth? she doesn't even want pain medication or a gown.

No: Birth is a natural event. Not an illness. I would not like this if the people are not mature enough to know when to say when. I don't think it is wise to put the children under this stress when they could be able to hear the first heard sound of the baby from a room near by. I like to have fathers present for the delivery for the bonding.