You betcha! It's definitely possible to have a healthy baby if you have type 1 diabetes. But, like with most everything else in the life with type 1 - it takes some extra planning and work.
I've always had decent A1Cs (well, once I got past my teens ;-) usually in the mid to high 6s, but before I got pregnant, my endo wanted my A1Cs to be below 6.0 and as close to 5.0 as I could get. I did it, but it was a HUGE struggle and I had quite a few hypo episodes.
Once I was pregant, the real fun started. I had doctor appointments once a week for the first 30 weeks, and then twice a week for the remainder of each pregnancy. My doctors were very strict with weight gain (undo pressure on heart with extra weight!), and wanted to keep my pregnancy weight within 25 lbs of my pre-pregnancy weight. One positive, I got lots of ultrasounds as they wanted to ensure the baby was not getting big due to high(er) blood glucose levels.
After 38 weeks, for both pregnancies, I was induced. Induction was not due to type 1 diabetes issues. In both cases, I had a baby girl who was under 7lbs and considered very healthy. One of the sad parts is both girls had low blood glucose after birth due to their pancreases overproducing insulin to cover my blood glucose levels and had to have a tube put into their stomach to put glucose in their stomachs. After those first few hours of being checked every 30 minutes with a heal stick to get BG levels, they were fine.
By the end of my pregnancies, I was needing four times the amount of insulin I used before I got pregnant. The minute I gave birth, I did not need insulin for just over 24 hours... but alas, try telling a nurse or doctor that a person with type 1 doesn't need insulin. The insisted I put my pump back on and I therefor was low (less than 50mg/dl for the first 24 hours after child birth even though cramming carbs the entire time). And of course, I couldn't convince them I didn't need the "diabetic diet".
In the end, my girls were definitely worth all the extra work my husband and I had to put into having them.
Every person is different and they will need to figure out how their body is going to react to being pregnant. You will definitely need to have a good relationship with your doctor(s) and be willing to go the extra five miles to get the job done. As with all things in the life of a type 1, talk to your doctor before becoming pregnant and plan ahead.