Certainly not in the opinion of the Dr's or insurance companies, who didn't think he should be or needed to be in a dedicated nursing home.
So perhaps you're jumping to conclusions?
Near as I could tell, the only difficult cases they felt should be in nursing homes were those that were violent, non-compliant with direction, prone to escape (not in this sense which is a 'hey, I want to do x', but will listen if you catch him), but the type that will actively try to bypass security measures, or unable to care for themselves in major ways (like lock in syndrome, inability to follow directions, inability to recognize basic environmental factors, etc.).
Are there potentially easier cases where they are 100% fully functional, yet in nursing homes? Maybe I guess, but I didn't run across any when I was visiting them later. All had some significant cognitive issues that made them very difficult to care for in some major way. But then, this is in California where it is extremely expensive for nursing home care ($3-5k/mo last I remember).
That is a hard case, one that I originally explicitly called out as extremely difficult to handle. So your criticism is unfounded.