The crate is not a little box in which you are condemning the dog to. I normally don't put anything but newspaper in with the puppy at first. It is hard to resist the thick, fluffy towel, but the puppy will pee on the tower, the towel will absorb the urine, and the puppy does not learn to not go in the crate.
The newspaper makes it easier to clean, but the puppy must deal with the damp, reeking kennel. 98% of puppies will attempt to hold themselves when faced with this situation. There is always that 2% that will not.
Now, for the crate to be used successfully, you need to be consistent about taking the puppy out. If you ignore when he whines, he will go in the crate and eventually accept that as how it is. Puppies from pet stores already have to go in their 'crate' so especially diligence is needed to correct them of this habit.
Not all whining is because we have to go out! We all know this. However, when my puppies whine in their crates for the first month, I take them out, and if it is 'bed' or 'nap' time, I put them back in. Don't play with the puppy no matter how cute they are. Just take him out and put him back.
Puppies are lonely in their crate, which is why they whine. I keep my pups crated by my bed. I use a wire crate for the first month or two, and then switch to the plastic, airline kind we all know so well. Putting a puppy alone, downstairs, is pretty uncomfortable and unhappy making for the puppy.
All of my critters are house pets, and my dogs sleep in my room to some degree or another. I prefer them there then locked away downstairs where they can't love on me, or, heaven forbid, protect me if something happened. A puppy has come from a litter and a mother. The lack of social and physical contact is devastating at this stage.
The crate is also not a place of punishment. It is a time out corner, but not a place to leave the puppy when you are mad. I do find it useful to crate the puppy after you become mad, so that you can cool off away from the baby.
The crate is a tool, as the leash is a tool. You use a tool, but you do not become dependent upon it.