There are some who think crate training a dog is mean and that a dog shouldn't be confined in that way. But there really are many good reasons why crate training a dog is a good idea and your dog would thank you for it if he could talk.
First off, dogs are territorial animals and they have a need to define their own territory. Sure, their territory is the whole backyard as outlined by your fence, but they need a space to call their own inside as well. A crate serves as a dog's den, his own place. It becomes a place of refuge that he can go to when he wants to take a nap or be away from too much activity. It also becomes his favorite spot to sleep at night.
A crate is good for keeping a dog out of other areas of the house. This serves two purposes; keeping the dog safe from getting into things that may harm him such as chewing wires, and also keeping your carpet clean if he's not potty trained yet. You can't always watch your dog every minute and the crate gives you some peace of mind.
In addition, crates successfully help puppies with their potty training. If the crate is just the right size and not too big, puppies will learn to hold their bladders because they don't want to soil the area where they live. You can buy a bigger crate that will fit them when they're full grown and use the partitions to block off the backend while they're smaller.
One other thing that's great about the crate is that it becomes a means of safely transporting your dog when you travel. This is especially true when you have an excited dog that's all over the place in the car or a nervous dog that would feel better confined in the car. Plus their crate with all the familiar smells becomes their home wherever you travel.
After dogs are successfully crate trained and older, you can leave the door open during the day and/or at night so they can go in and out of their "home" when they want to sleep. It's immensely comforting for them to know they have a special area that's all their own.
Crate training a dog has many advantages. It is not meant to hold them prisoner for long lengths of time and it shouldn't be used as a place of punishment. Instead, use it to help your new dog become potty trained, stay safe, and feel comfortable.