I think whichever method you choose, you will also be in pain. It is true that your muscles will loosen. Besides pelvic and kegel exercises, you can also consider cosmetic surgery if tightening the muscles there is very important to you.
I've slight piles before and during my 1st pregnancy. After I delivered (naturally) I didn't have piles anymore. Also, it depends on whether yours are internal/external. Whether or not the piles will worsen depends on how well you take care of your body, not depends on whether you go for natural delivery or C-section. Of course, if the piles are very bad, your gynae may recommend for a C-section.
The tear down there recovers quite quickly, depending on how well you keep it the wound clean. I've heard that the C-section wound takes a longer time to recover. There's actually 8 layers of skin that the gynae has to sew up, so you can imagine how long it will take for 8 layers of skin to full close up and recover.
You can breastfeed after a C-section as well as after natural delivery. Success in breastfeeding in not determined by the method of delivery, but how determined you are and how hardworking you want to be to succeed in breastfeeding.
You also need to consider how many children you want to have. For C-section your body needs at least 1 year to recover before you can get pregnant again. Plus, there are some risks involved for a VBAC (vaginal birth after C-section). If I am not mistaken, I think you can only allow yourself to go for a maximum of 2 C-sections. 3rd pregnancy onwards will be more risky.
On a final note, why dont't you leave it to your baby to decide? If baby is in head-down position, then maybe baby wants to be delivered naturally. If baby is not in head-down position by 36 weeks, then take it as a sign to go for C-section.