I think its less about human lifestyle choices and more about what suits your dog and its temperamnent
That is a great way to look at it.
Z could have more room but it does not suit the flow and rhythm of the house. When crating him we had decided that if he totally objected to the crate then a larger area such as a pen would be created in another room with some minor adjustments of furniture. He has taken to the crate well so we are happy to continue in its use.
Knowing now what we have learnt about his character and temperament I would not think more space would suit him. He is very much a working cocker and more space would lead to him wanting to explore and hunt the rest of the space at a hundred miles an hour. He would continue winding up. Whereas, with the crate, when he gets a little ‘hotter’ and starts winding himself up we can ring him back in using the crate where he will sleep and/rest which is what he needs but just does not know it! Door open or closed varies according to time of day and level of supervision.
That’s only my gut feeling based on observation.