DDog has never been in a crate.
She was 6 months old and almost house trained when we got her from the rescue, and it was summer so just left the back door slightly open. The only accidents were when we closed the door and didn't take her out last thing. So don't have the experience of a younger puppy - but from what I have read they need room to go to the toilet a little away from their bed anyway. So with a young puppy/cold weather would have blocked off a bit of the room and put down pads.
She has her bed under a side table in a corner, so tucked away and peaceful and the rule is that she is left alone when she's there. She takes herself off there when she wants to, comes back when she wants company.
She usually sleeps in my room, but I hear her pottering downstairs where she presumably sleeps in her bed or on the sofa, then comes back when she wants company.
I don't see the value in cages. Dogs need a quiet, comfortable place available, but no need for it to be a cage.
Crates/cages weren't a thing until recently, I don't know why they have become fashionable (well, I suppose for owners convenience, but if you get a dog then you need to think about their needs more than your own convenience)