This year was the first time I'd ever done it, and we plucked. I have to admit, I didn't notice any smell from the feathers, but then we were outside.
We set two cinder blocks up and made a little fire between them, then set a big pot of water for scalding on top of the two blocks.
Honestly, I was surprised at how easily the feathers came out. They more or less wiped off. I guess we got the timing right. We didn't use boiling water (I think I read somewhere that it only had to be 160 degrees or so to loosen the feathers). Maybe that's why we didn't have a smell? My nose is pretty sensitive. Then again, we only processed five birds, so maybe it would have been worse if we'd done a lot of them in an enclosed space.
I liked having the skin on... the chicken is a lot more flavorful and tender that way, and if you're freezing, the skin also helps protect the meat from freezer burn.