I always was of the mindset of all of you. Here in Australia, however, many, many dogs live outside. I still don't really AGREE with it, and I definitely don't like it, but, it is an option for some people I guess. Dobby lived outside for about 6 months before I convinced Graham to let him in the house. My stepdaughter's JRT still lives outside.
That being said, I definitely wouldn't do that to a puppy. If you have no other option than for your dog to live outside, I would suggest looking at an adult dog. Not that they should get any less attention, but they probably could handle a bit less. I would definitely try to fence in part of the yard though, rather than tying the dog up or keeping it in a shed. You said something in your other thread about moving soon - are you moving to your grandfather's house, or away from it? If you are moving away, why not wait until after you move to get a puppy?
I completely understand wanting a puppy, or a dog. But try to think about the welfare of the dog, not just what you want. If you adopt a dog, please don't get a dog that has lived in the house before - it will feel like it's done something wrong and is being punished.
I think dogs can have an okay life living outside, and if done properly, it's certainly better than some other situations. But, personally, I want my dog with me, all the time. I hate leaving him home to go to the grocery store! He actually comes with me most of the time, except in summer when it's too hot to leave him in the car. =) Most people on this forum consider their dogs to be like children, and can't imagine them living outside.