I think the saddest thing about residential care for people who are no longer able to live independently, is being surrounded by other folks, in similar difficult circumstances. I agree with GA, about the positives of having young people, especially children around.
I've taken part in a small display of dog obedience and agility for residents at a local residential care home, a few times. It's always been fun for us (and our dogs) and it's been obvious how much the residents enjoy it. We have cups of tea and cake after the 15 min display, and the dogs get to meet the residents individually. My lively young dog always behaves impeccably, no jumping up on knees, the dogs seem to just know to be gentle.