Our boy had a crate as a pup, purely because that's what he'd been used to in his foster home. We never shut it, it was just his den/bed/safe place.
All three dogs used to compete to get in there first and we'd often find at least two, if not three of them all squished in together.
Eventually I got fed up of snagging my jumpers etc on the corner of it every time I tried to get past into the laundry and replaced it with a big comfy bed. He was mightily unimpressed.
He likes his bed well enough, but when we got the crate out to use when one of our other dogs needed to be immobilised after an operation he spent the whole time trying to work out wily ways of ousting her and getting in there himself.
We have two dog beds in the kitchen, one just in the corner and the other under the table, surrounded by chairs. All our dogs have preferred the one under the table, I assume because it feels more den-line, just like the crate.
We still have his crate. but just use it in the car these days and he always jumps in really enthusiastically. We also have a collapsible crate to take on holiday with us and despite the family dogs having their own 'doggie sofa' he still chooses to sleep in the crate.
I think it's like many things relating to dog care. If used correctly it can be a useful and positive thing for both dog and owner - dog feels safe and owner knows they have somewhere safe to put the dog if/when the need arises. However, it is very easy to either misunderstand appropriate and positive use and/or to abuse it's usage, either of which are likely to be detrimental to the dog.