It depends, I worked in a similar place and the people there lived in relative comfort. Obviously it’s going to be a sad situation regardless, as even in the best of settings they no longer have freedom. but to some of the people in there they preferred it. Many of them had their own collections of books and even some video games and the like in their rooms and they could do things like working at the canteen to occupy their time otherwise. For someone with very severe mental issues, living somewhere that keeps you away from the world and makes sure you’re fed and relatively safe can be preferable.