From a rescue point of view I would say individual circumstances have to be taken into account for both the dog and owners. I know a few of my fosters would have been happier out in a kennel on a night time and others would have been mortified.
Ask "spanielmadhouse" his kennel is better equipped than my front room

I'd be quite happy to sleep in there
Is the kennel heated? May be worth mentioning to the rescue organisation

Also have they actually carried out a homevisit to "see" for themselves rather than jumping to conclusions?
My girls are all indoors on an evening, but our old boy Jasper would have been much happier in a kennel on an evening, due to what he was "used" to from his past.
I know all rescues have different guidelines but I think each dog and prospective home should be matched accordingly and taken on thier own merits, if that makes sense?? We were turned down for a rescue springer x pup before Missy came along as we had the dreaded......."children"

.........a swear word among a lot of rescues, as app. our children WOULD pull the dog around

My kids have never been without a springer in the house and help so much with the fosters but also show a lot of respect to the dogs and vica versa!