That pic is exactly how all dairy calves are raised nowadays. Except for the straw, straw is the best breeding ground for flies and bacterial, the best material is 2"+ drain rock. I hate looking at it because it looks so uncomfortable but at least they don't die.
I tried all sorts of other arrangements but the hutches are by far the best, primarily because if one calf gets sick it is easily spotted and treated right away and somewhat isolated from the rest. Poop reading is a learned talent but I can now tell the difference between E. Coli and Cripto and Coccidia, nutritional scours vs BRVD and BVD.
The hutches you linked aren't like veal crates that restrict movement in order to keep the meat nice and white. They look like this:
The ones I built are about 4'x4' plus the "yard" that's 4x6. Usually we keep them in the hutches until about 3 weeks of age when they have passed the critical stage then we can bunch them up in a big shed in groups of 5 for another 3-4 weeks until weaned then another 4 weeks in an even bigger group on grain and good hay by which time their rumen is somewhat developed and they can eat some grass.
That's just the way it is, you can't leave them with mom out eating daisies if you want cheese on that $1 hamburger and cream in yer Laté. The best you can do is try to keep them alive and not be mean to 'em.
But I'll be honest, it does get to be tiresome and a little bad feeling to have to be so unnatural - a lot like the attempt at raising melons a couple of years ago when the cuk beetles were so bad - cuke beetles are the adult of corn rootworm and I've read recently that the Bt trait is becoming ineffective ("Bt trait" means a gene splice that causes the corn plant to produce a poison to various worms and larva).
The better plan may be to get a large buffer between modern ag and any attempt to replace it. . . .
The legitimate object of government, is to do for a community of people, whatever they need to have done, but can not do, at all, or can not, so well do, for themselves -- in their separate, and individual capacities.
-- Abraham Lincoln, Fragment on Government (July 1, 1854)