I grew up having to hang out clothes and swore I would NEVER do it as an adult. Then, three years ago, I suddenly decided to give it a try. I hung out 102 loads last season, and plan to do so again this year.
Yes, towels aren't as fluffy/soft, but I've found spinning them at the slowest speed helps keep them a little softer. I also bought (completely by accident) a set of towels at Sears (on closeout) which come off the line much softer than my "winter" towels, which are bigger and thicker, but emerge from the line stiff and scratchy.
I've lived most of my life in tiny, rural towns, and can't fathom that there places where hanging out clothes is forbidden. I live in a town of 5,000 and it's well over twice the size of the town I grew up in. I mean, we have a McDonald's and everything, LOL!
And I hang out all items, including my briefs---although I heed the advice of our own Laundress and hang them on the back line (which is very close to my fence) with larger items hung in front of them for discretion's sake. And they're just white cotton briefs; you can see them in any Shopko/Pamida flyer or department store catalog.
Over 17,700 dryer fires each year?! That's scary. And I have a newer Frigidaire dryer, which seem to spark up at the slightest provocation, if the user complaints are accurate.