I would never want my tent inside my pack. In the first place, it's more than likely going to be wet (if not from rain, from dew). If it's inside my pack, I want it on top and outside a waterproof pack liner. It's also a good idea to be able to get the tent out and set it up without getting the other contents of your pack wet. It's often going to be raining either when you make camp or when you pack up in the morning!