My bathroom is on the other side of the house, and I sleep naked. If I wake up in the middle of the night, I piss outside every single time. For almost 4 years now. I also tend to piss outside when I wake up early in the morning, unless I have to poop.
Peeing outside feels good, especially when it's cold. When it is raining and you're naked, it's even better. When you pee outside, you don't have to aim--I generally pee hands free when I'm outside. And of course, you save money and it is good for water conservation.
The only thing is it kills the grass in that specific area after a few weeks. If you don't piss in the same square foot area, then it's no problem. If you stop peeing there, the grass grows back. Also, here in Florida, sand in your yard (instead of dirt) is common. If you pee on sand (and probably dirt, too) and there is no grass, it stinks bad. If you have grass, it still stinks eventually. The trick is not to use one spot too much. Just rotate once every week.
I think it's crazy to freak out over peeing outside. It's where everything else pees. Our pee is no different. As long as you have a privacy fence, I say go for it.