It does very much depend on the circumstances and the people involved.
I live with my elderly aunt and keep house for both of us, look after her, help her to shower, do the shopping, change her bedding, cook the main meals, cleaning, pick up her pension, go to hosp appointments with her, make phone calls for her and numerous other things. As well as hold down a full time job.
She is housebound but does at least manage to potter around the house when I am not at home.
Its not easy though and I often feel that when I leave my day job and arrive home, then I am just starting another job in the evening in the role of carer. And as for having a day of rest, forget it, that just never happens!
But honestly she would never cope in an old people's home. She likes her own space and I think she likes having someone to boss around! Me!! So I think while ever she is physically able to get around the house then our current situation will be okey. If she did become too ill though or bed ridded for example, then it may be that a different solution would be needed.
God willing we will all be old some day and I think it helps to imagine how we might feel when we get old when thinking about such questions.