We've been dolly-towing a Prius (and a Chevy volt a couple of times) for the past two years since we purchased our motorhome. Yes, the dolly is one additional thing you need to consider when you're putting your rig into a site, it's never really been an issue for us so far (17 different out-and-back trips and about 10K miles, and one big trip with 10 different stops and another 5K miles).
I liked the idea that you could dolly-tow *any* front-wheel drive car that your coach and dolly could physically handle. That was especially great since that's what we had at the time.
At campgrounds, I either left it hooked up when using a pull-through or for back-ins unhooked the dolly, ran it into the back of the site and backed the RV up to it. I'd then hook it back up so all we needed to do was pull out.
Setup takes me about 5-minutes (since I have a pit crew of my boys and my wife to help get things set up and everyone knows their job, 10 min without) - blocks under the ramps to lessen the approach-angle, slow and steady up the ramps, put the hitch pin back in and ratchet the wheels down - done.
So due to some life changes, we did a car swap (eldest boy got the Prius, Wife took the Volt) and I needed to get a new car and chose a Jeep Wrangler intentionally so I could flat tow. The only significant difference I've found in the process so far is the question of what to do with the dolly when we're at a campground or home - but it's not as big of a deal as everyone is making it out to be. I didn't find much change in the actual act of towing itself and didn't find any need to change anything I was already doing. I still remove the tow bar at home since I don't want it left out in the elements when not being used, so that eats up about the same amount of time used to put the dolly away.
In case you're curious, my flat-tow gear choices: Blue-OX Ascent tow bar, LOD Signature full bumper + frame ties + Blue OX adapters, the MOPAR flat-tow light harness and a Blue-Ox Patriot braking system.
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