Chronologically, the story about Ethan's wife marks the first time we hear about mothers on the island not surviving childbirth. While Ethan didn't specify she was on the island (he was 'undercover' as a survivor), it's safe to assume that's what he means.

Ethan telling the story of his wife and child's deaths is very poignant. Given the lies that The Others often tell, I think this is the rare occurance of one of them telling the truth.

It's no great stretch of the imagination to guess that it was, in fact, The Others who supplied Ethan with the medicine-filled bag. It certainly helped to ingratiate him into the survivors' camp with Jack.