I use the dig into a hill method. I make a small room and use some of the wood I've gathered to make fence posts to cover windows. You can still see out well enough, but mobs can't see (or shoot arrows) in. I'll use more wood for charcoal and torches, and spend the night mining and making better gear, which is a lot more productive than just hiding on a hole all night.
The pillar up method works in a pinch, and it's actually beneficial once you have a bow and arrows. Instead of just waiting the night out, you can start sniping mobs after midnight and collect the drops in the morning. I've built several bases with towers just for that purpose. I often stay up at night sniping mobs, and you'd be surprised how many drops you can collect that way (especially if you dual-wield with your bow in the off-hand and a looting sword in your main hand, which gives you the looting bonus for bow kills). I guess that will attract the new flying mob, once it's introduced in 1.14. I'll be interesting to see how hard that flying mob will be to kill with a bow (and what it drops).
Anyway, back on topic. Simply hiding in a hole works, but it's a waste of time that could be better spent mining and crafting better gear.