A dog that is left on it's own will never establish a relationship with you the Master and friend the way a dog who is part of the family will. A dog who is kept with you in the house will be more obedient simply because you spend more time with the dog and every day the dog is made to follow commands instead of thinking for itself it's whole life except when you grant him "work-release". A dog's nose will not be ruined by having him/her in the house anymore than a dog outside who encounters burning trash, or skunk or anything else. My GSP's live in the house and are only put in their kennel when no one will be home for 8 hours. They enjoy being outside but love being with their family in the house more. The more time spent with your dog the better dog you will have. I will put my dog up against any other outside dog in the bird fields and know my dog will do exactly what he is supposed to because he wants to please me not just because it's in his breeding.