We use a crate, our dog is now 3 and sometimes chooses to use it during the day, if I am not around to be his pillow.
He also goes in whilst we eat, he gets a fishy treat and has a short snooze, the comes out for the rest of the evening, again choosing to use use to lie on.
It is covered by a blanket and has very little on the floor as he doesn't like cushions, orders flat areas to lie on.
He also has a crate in the car.
We take his crate when we go on holiday - which helps him settle in really quickly.
Using a crate has to work for you and the dog. If it doesn't then don't use one. But if, like us, your dog won't settle in a basket, repeatedly trashes any kind of cushion or basket you provide, and only settles in a crate it on you, then use one.
It's not cruel if the specific dog likes it.