Let $M$ be a smooth manifold and $G$ a Lie group, then if $G$ acts smoothly, freely, and properly on $M$ it is a well known result that the quotient $M/G$ is a smooth manifold. In the context of topological spaces in general, I often hear that quotients by free actions are "well behaved", however, when I think of actions on smooth manifolds whose quotients are ugly it's the properness quality which is lacking. For example, $\mathbb{Z}$ acting on $S^1$ by irrational rotation is free but not proper, here the quotient isn't Hausdorff which is what I would call ill behaved. However, if we consider $S^1$ acting on $S^2$ by rotations about the $z$ axis, then the action is not free (the poles are always fixed), but is proper as $S^1$ is compact. The quotient space is simply the closed interval $[-1,1]$ which is a space I would call well behaved, even if it's not necessarily interesting.
Given this, it seems to me that the more crucial property is that the action is proper. So why do we say that quotients by free actions are in general more "well behaved"?