Actually, most dogs find comfort in enclosed spaces when they are alone or afraid of something. We had a schnoodle when I was a teenager who would always crawl into the small space behind my headboard whenever there was a thunderstorm. It's part of the "denning" instinct, I guess.
Crating provides a safe, comfortable place to keep your pet when it is left alone, provided it is done correctly and the pet is not left there for extremely long periods of time. The crate must always be large enough so the dog can stand up and turn around in it.
Using a crate to train your dog can save you a lot of frustration on finding "surprises" left for you in the middle of the night and they are often trained much faster when using this method. As a puppy, the crate must be large enough to be comfortable for the dog, but NO LARGER. You don't want the puppy to have enough room to potty in his cage and get away from it. Dogs typically do not like to relieve themselves in the same place they sleep so they will learn to hold it until let out.
However, crating is indeed cruel if
1) the crate is too small
2) the dog is left in the crate more than it is out of the crate
Your inquiry was NOT taken as offensive at all. I thought you presented your question about crating very well. Again, some people don't need to use this method, but it's always a good idea to get a dog used to a crate in case you have to travel, move or the dog is displaced due to a disaster (fire, hurricane, tornado, etc.).