I've experienced both side of this topic on a very personal level. Both my father and mother were raised that dogs were things and dirty things at that - to be left outside with the dirt and the fleas. Fast forward a few decades and my mothe and father had me and my brother. We rescued a golden puppy, Sunny, from a neighbor b/c he was "too much" and they were going to euthanize him. He was deathly afraid of water hoses and bathing him was an exercise in futility. My mother was of the opinion that dogs are pets - but pets that do best outside. My father, an avid hunter, views dogs as a hunting tool, merely for his own devices and nothing more.
I remember whenever it rained, my mom would bring Sunny into the kitchen and barricade him in so he didn't track mud all through the house. My bedroom at the time connected straight to the kitchen on one side, the hallway on another and the yard on a third side. I would sneak him in my bedroom soaking wet and we'd snuggle under the covers. Of course, when morning came, I got the beating of my life - but it was always worth it.
Now that we have a golden retriever, he stays inside 70% of the time - the other 30% of the time he's racing around our backyard, throwing dirt all over the place, eating grass, looking like a lunatic, or he's walking through the neighborhoods, visiting parks, visiting businesses, etc.
This lifestyle works best for us. I find when we crate him at night he gets lonely and its the absolute best thing when we reappear to get our morning rituals started. Eventually, once we're 100% potty trained and no longer chewing, I plan on snuggling with him in bed every so often. Again - this works for us.
Sunny loved our family and was very obedient (minus bath time) and I feel while I would never do that to my own animals, Sunny lived an amazing life full of love and laughter, smuggled meals and endless activity with his pack all outside (for the most part - I was a tenacious child.
After writing all of this - I just realized - I forgot my point.
Oops. Well I hope you enjoy my ancedote.