I use both methods
The 8-16 mm lens is a specialty lens and whilst very good for outdoor wide angle shots adds curvature issues and doesn't give me the same "I could just step into this photo scene" feel as stitching.
The best free software for autostitching I have found is Microsofts Research Lab's Image Composite Editor at
Microsoft Research Image Composite Editor (ICE)
It is not supported and isn't perfect, but it's very easy to use.
There are several rules to stitching that you should be aware of
Overlap the images by around 30%, keep the Fstop, ISO and Exposure times the same (IE do it in manual)
And double check the focus points before you shoot.
At night it can be hard as the exposure times almost always mean the scene can change - ie clouds and stars move, and foreground objects - cars and people etc also move so you can experience blurring. But you get that with a single lens too.
It comes down to practice practice practice