I didn't write the rules, nor am I suggesting a change in them. The simple fact is that if someone (of any age) runs out of money and has insufficient income, they are eligible for Medicaid payments for their medical bills (including nursing homes). Children and other relatives of sick adults are not legally responsible for the care of their relatives (whatever their moral responsibility is - and I believe there to be one). This is simply the way things are, period. You want that changed, write to your Congressman and Senators - and good luck, you'll need it.
The other simple fact is that the majority of the homes that accept Medicaid as payment for their services are places where you would not want to send your aging parents.
The care is substandard to put it mildly.
In this case they are getting what sounds like very high quality care including excellent nutrition and physical therapy.
It would not be for everybody but for those who can pull up stakes and make the trip this is a fine alternative.