No you're not overreacting! Crating is fine if you do it the right way and don't leave the dog in the crate for too long. It sounds like your family is using it in a totally wrong way though 
Crating is a very useful tool for housetraining. It also helps if you have a destructive dog or a dog with seperation anxiety who chews on furniture, rips up carpet, etc. If you have your dog crated while you're away, the dog should definately be out of the crate at night and as much as possible while you are home. Extra care should be given to exercising dogs that get crated during the work day.
It is cruel to keep a dog in a crate and only take him/her out when you want to
Alyson
Shiloh, Reece, Lolly, Skylar
and fosters Snickers, Missy, Magic, Merlin, Maya
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