Well mine can either be outside, inside, crated, penned or kennelled....
Currently I have two bitches in season. They're kennelled, in metal runs/cages yes. With concrete floors. No mucking about. They are not to be bred yet, they are too young and it could be harmful to them. I have a duty of care to them and locking them up is what it takes. They get out several times a day to run about etc, I haven't had any complaints from them (apart from the ones about me not letting them out with the boys!!).
I have one foster greyhound who gets too worked up in large spaces and is only happy shut on one of the verandahs where he can see out but feels secure.
I have my boy Boris who normally sleeps at my bedside, but currently wants to be as close as he can possibly get to Sonya's kennel (ahhh love is grand.... ). Even when she's not in season he actually asks to go out and stay out some nights - heat bothers him but not cold - and rabbits and possums are only running around the yard at night!
Genie sleeps on his lounge chair next to the fire... enough said - Salukis know they deserve the best, it's just their humans that need educating...
Different things work for different dogs is probably what I'm getting at. Every dog and owner is individual and there are so many different ways to look after our dogs that suit us.
Caging or crating a dog is not cruel. Mine are sometimes crated - they aren't quite Great Danes but they're closer in size to Danes than most other dogs. Crates come in sizes to suit our giant dogs... You just pay more for them, and need more floor space to set them up!!
Dogs aren't human. We might not like the idea of staying in a small space, but dogs aren't the same.
I don't like dogs chained onto utes either. I have picked up what's left of them off the highway when chains fail. I also have friends whose best working kelpie gradually stretched his chain by leaning towards the side until he fell off, at night on the way home from mustering... A passing motorist had to tell them, who knows how long he was hanging there but he didn't have alot of his pads left and had several broken legs. They invested in secure cages for the back of the ute - and it cost less than the vet bills or replacing their good dog.
Also, don't forget that we have a different climate to much of the US. In parts of the US and Canada the livestock have to be indoors throughout winter let alone the dogs. Many folks over there cannot comprehend an animal living outdoors with any comfort level.
We're all individuals, that's what makesplaces like this great - if we all had the same experience and ideas it would be dull and we'd watch TV instead wouldn't we??
Phew, that's enough from me.