in romania, the lid is not put on until the very last minute, and the body usually stays at home until burial (this is for orthodox, protestants, and, as far as i know, for atheists too).
of course, there is a smell, but usually there is a only 2 or 3 days till the funeral.
exceptions are if the face is smashed up badly, or if there was a dangerous contagious disease.
after all, we all (except strict vegetarians) touch animals that have been dead for many days (in the form of our dinner), so we shouldn't be squeamish about dead humans.
also, in romania, everyone goes to visit the deceased, neighbours, children, work colleagues; all sorts of people who didn't know the deceased very well, and this seems to me to be very respectful, and stops death being a scary taboo subject, like in uk.
when my close friend (ok, so she was 50 years older than me, but still 'my friend') died when i was a kid, her family (who were almost never in touch with her during her life; my family filled that function for her) decided that no kids were allowed at the funeral.
that is much, much worse than having an open casket in my opinion!