You need your own space. Parents and children might have meals together, but that's it. Proximity is important, but we all want independence and privacy. For the last 10-15 years, governments have been promoting a trend away from institutionalization and toward families and the community taking on more responsibility for seniors. The rationale is that keeping people in the community is both cheaper for the public purse and better for people.
Most seniors are active, vital, independent people.
Placing them in a facility just because they're old means they lose their independence. Once institutionalized, they have somebody else telling them when to get up, when to eat and when to go to bed. Draw up a balance sheet and look at the pros and cons. Think about what your relationship with the person has been like over the years. Both parties need to think about what they'll be giving up in terms of privacy.