What did people do in the past before crates though? They would have been more thorough to put away electrical wires maybe? 
The reason being, unless you are to crate the puppy 24/7, there will be occasion that they are are freely moving around. And unless you are watching them every second of every minute, then they will have chance to do something when you aren't looking.
So basically they have opportunity to chew through wires during their non-crated time too. If you aren't crating 24/7 then what do you do about wires when the puppy is allowed to move freely? Surely better to puppy-proof the house full stop than crate and hope for the best the rest of the time? accidents can happen in the non-crated times too!
And to be honest, part of welcoming a puppy is puppy-proofing a house, just as it is toddler-proofing for a toddler. If you can't do it or don't want to then why have a puppy? It's part of the general notion that to some people, dogs are accessories and the more unpopular parts of their natural behaviour (puddles, chewing) can be eliminated by putting them in a crate and saying it's for their own good.
This still doesn't explain crating for older dogs who don't chew either.
Also, the difference between a utility room with a bed in it and a crate with a bed in it is the ability to walk more than two feet (depending on the size of the utility room - if its square footage left due to washer/dryer etc is no bigger than a crate, then it's no better than a crate!