To me, if the dog is receiving adequate basic care, and appear to be happy and healthy, that's what matters.
For example, I have two dogs that live outdoors, not loose in a yard. I have a lot of people scold me, carry on about how they must be so miserable out there all alone. Well, sure if I could bring my dogs inside to live, I would without hesitation. But I spend most of my free time with them, and when I'm not with them, they have toys and things to keep them busy. How much different is it than someone who spends 8-9 hours a day at work and their dog is crated the rest of the time, then only has a few hours of play/exercise/cuddle time before their people go to sleep and they do to? Not very, if you think about it. My chihuahua does not go for walks; it's just too dangerous for him. He's been attacked enough. Instead, we play fetch inside for as long as he likes, whenever he likes, and he likes that just fine.
My dogs are well cared for, fed, groomed, exercised, provided with daily training, and just plain ol' companionship. My dogs are big 'smilers'. You'll rarely ever catch them without big 'smiles' on their faces, bright eyed and ready to go. To me, I feel like that have a good life.
On the other hand, I know people who keep their dogs inside, and are automatically considered perfect pet owners. Their dogs hardly ever get groomed or exercised, they receive no training, no games, just enough to eat and never really seem happy. They seem anxious and frustrated. To me, this seems like they don't have very good lives.