I baggy when I'm in the house, except for when I'm doing housework or if I'm working out, because then my scalp sweats, and I don't like that.
But if I'm watching a movie, doing my homework, messing around on the internet, or sleeping, I baggy.
I very very lightly moisturize with whatever I'm using at the moment (still working on a staple moisturizer), and then put on a shower cap or plastic bag. If I'm feeling lazy, I'll just put the baggy on my plain hair. Then, I'll cover that with a net to keep it on, and go about my business. It stays on overnight, and if I'm not doing anything the next day, it'll stay on. If I do it right, my hair comes out moist but not wet. Whenever I decide to take it off, I seal my hair with oil right away to lock in all the goodness.
I like to baggy because I have thirsty hair...she loves moisture. And it's a really easy, small, and unobtrusive thing, that makes a big difference in my hair. I think you should try it, and see what your hair has to say about it.