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One main benefit of the Houses is that they don't need to request Labor from Townhouses and immediately start working the fields when their season starts. Farm Fields always tend to have lower yields unless your city is able to maintain a constant surplus of Labor. Not to mention that Farmhouses technically produces 1 additional yield of their crops due to self sufficiency.
As for the happiness issue, I avoid it by making the Townhouses always happy with nearby happiness buildings like Temples, Gymnasium and Monuments.
Farms have their own workforce but need a market for the consumption of goods, access to religion and entertainment.
Fields need labor but can be distant from the market, but tend to produce less because access to labor is not always accessible and immediate.
However, they do not consume goods or need their own access to entertainment or religion.
In conclusion, if the production site is close to the market - choose the farm, if the production site is far from the market - choose the field.