This really depends on the environment and the cat.

I've had outdoor cats my whole life. Grew up in a rural setting, and if I was outside, so were animals I was close to.

Some cats do not seem to have enough common sense to stay out of trouble, or are just too adventurous in general. If they are indoor only and one is serious about that and does entertain them, they live long, and I believe happy lives. But, if they get out, even a few times, I see that as cruel, unless they reject it and some do, content to stay indoors.

If your environment is cat hostile, expect maybe a third of cats to do well. It's not pretty, and something I see as a driver to have indoor cats.

To me, it comes down to this:

Cats --most cats, and in particular, the really bright ones, present as little people to me. They have a sense of self and presence of mind that I find notable. It's a shared life, and they have a part in that, much like people do. Down deep, they understand that we want them there and that means they do what they do and doing that is largely OK, because we would assert ourselves otherwise.

Friendship or close bonds with cats are special because of this. They really do make choices, have specific people preferences, and treat you like an equal in their eyes. I love that about them.

And to me, I can't keep 'em indoors because of that. My experiences with indoor cats are good, but my experiences with outdoor cats are GREAT! I get to see more of who they are, and our adventure times outside in the yard are awesome.

One can learn to communicate with cats and actually have sophisticated dialogs. (as far as animals go) To make this happen, it's important that you engage with the cat a lot when it's young. You learn how to understand it, and it will understand you.

If this interaction doesn't happen, and you don't push the boundaries of it, the cat gives up and is happy to work with what does work. No worries. But if you want to get close, the work is on you. The rewards are great though. Highly recommended.

I've been impacted by a cat to a point where I still feel genuine grief over one special one we lost a few years ago to disease. That one was bonded to us on a level I've rarely experienced with animals before. My wife got ill, and that cat stepped up big. Somehow she knew it mattered. Best friends for life kind of thing. I'm convinced she helped my wife recover from some near death medical issues by sheer force of will and being there. Not just hanging out, but being there. Hard to explain, so I'll stop.

The way I see this is the cat makes it's choices. We can help them make better choices and give them comfort and security too. An outdoor cat who is well bonded to you will share it's life with you gladly, and the time with the cat is worth it, even when it's short sometimes.

It's much like humans who choose how they want to live. We don't always make the smarter choices either. Cats are independent creatures deserving of similar respect in terms of how they journey through life.

And watching them outside, senses alive, hunting, exploring is pretty awesome! Mine share that experience with me, sometimes to the point of giving me that, "hey, quiet!" look. They don't mind that I am there, and if I get the laser pointer, or some string, or sticks, etc... and play, the best play is outside. They seems to go, "full cat" when outside, and I find that compelling and amazing to be a part of.

Seems to me, such a difference in the cat means it's not so simple. Some cats crave it, others don't. Humans need to do the work to live with their cat and give them the same freedom that cat does to be who they are.