I have had both laundries as you describe, an Old Queenslander open batoned wall and cement floor one and cupboard in a flash warehouse unit.
The Queenslander under the house one, always felt a bit dirty. I didn't feel comfortable going there at night either. However, it was close to the washing line, and it wasn't noisy.
The cupboard was just that, a cupboard. There was only room for my machine, and a tiny space between the machine and the floor where I fitted my washing powder. No shelf, no room for baskets, never mind iron and board, or any other laundry related thing.
If you can have space for those things in a cupboard, I can see it working quite well.
Actually i'd just about kill for that cupboard now, my current "laundry" is a washing machined jammed into my bathroom. Luckily I did have space to install a laundry cupboard this time. I'm also going to take a tip from a PP and look on Pinterest for some small space bathroom ideas. Actually is very relevant right now as my machine pipes are leaking and I have to get a plumber out to rip up the floor. Sooooo that bumps the bathroom up the list of renovation priorities!!!!!