There is a better alternative for wood waste. The better alternative is not disposing or recycling wood waste, but re-using wood waste. I have reconstructed shelves, tables, and trash bins from modest amounts of scrap lumber. Unfortunately, as the waste infrastructure currently operates, disposal wins most of the time. The reason disposal wins most of the time is because it is easier for haulers to take one load of material, to one place, and pay a fee, than it is to take the additional steps and the additional time, to sort out the re-usable wood.
Re-using wood waste is a better alternative than disposal or recycling. As a practical matter though it must be done locally. When haulers are local and the infrastructure is accessible the act of re-use is much more likely.