My parents had one of the in-ground cans in their 1955 ranch, and it really did work great. It didn't flood even in rainy Oregon because it had some drainage features and was positioned against the house under the eaves of the garage roof. The garbage service managed to render it unusable during the early 90's by inches. First, they refused to lift it out of the pit, which I suppose is understandable from a back health standpoint. Then, a few years after we started lifting it out of the pit ourselves every week, they began charging extra because the automated claw thing on the truck couldn't lift the can. What finally killed it was when Portland went to the multi-can recycling system where the cans are provided by the city (which I do think is a good thing overall). The last I saw it, my mom had removed the lid, filled the pit with dirt, and made a little flower bed out of it... I still have fond memories of removing the garbage can, climbing into the pit, and playing "tank" with my brother (gross by adult standards, but completely righteous if you're 8 years old).
As an aside, I think my apartment here in Stuttgart did a nice job with the garbage/recycling area. This thing is huge due to the sheer volume of stuff it needs to handle (the Germans are pretty impresive recyclers), but a much smaller version placed inconspicuously could compliment certain Mid Century homes by virtue of the the flat roof, long horizontal lines, etc.

You are born modern, you do not become so.