Wow. This really hits home with me right now. My dad just spent several weeks in a nursing home for elderly people in need of temporary medical supervision and physical therapy.
It was an awful place. Although many of the staff were kind and tried hard, there were just not enough of them to make things run properly. Dad couldn't get out of bed on his own, so they were supposed to get him up into a wheelchair for a few hours every day. However, on the weekends, they were severely understaffed and Dad would have to stay in bed for 48 hours straight. And this was supposed to be a 4 star establishment!
In addition, the food was absolutely terrible--like prison food. It was so bad that my dad lost his appetite and, if we hadn't brought him two home-cooked meals a day, I'm sure he would have wasted away to nothing.
This is in the United States. I don't doubt that many western nations are facing similar problems with elder care. With couples having to work more and more to make ends meet, it can be extremely difficult to take in an aging parent. And unless your loved one has expensive private insurance, the really nice homes are not going to be covered for them.
I like the idea of the alternatives you mentioned. Adult daycare sounds especially promising. I've also thought that, for elderly people whose medical needs aren't too critical, it would be cool to have them share homes or apartments with responsible college students who could do things like make sure they get their groceries, do yard work, and just be around in case there's a fall or an emergency of some kind. In exchange, the student gets free rent.