New research shows that the best way to move an individual with Alzheimer's into a nursing home or assisted living is to start with adult day care first. Apparently, transitioning a person with a smaller step like day care helps to avoid the rapid cognitive decline that otherwise occurs.

Has anyone personally seen this?

A good article can be seen at
http://ezinearticles.com/?Transitioning-A-Person-With-A...A-Facility&id=929549

I agree , Adult day care can do so much for a person who has physical or mental problems.I would try to get my aunt to go but she did not want to have to pay .Her money was her freedom.My mother was never able because it took til the end to get the proper meds to help her symptoms.My husband would go to the senior center until he could no longer keep from falling and placing himself in danger.Any kind of interaction with people is wonderful.
My aunt loved the volunteers that came and did puzzles with her, played checkers and cards.She was not suffering mentally but physically.Mother was never able to socialize because of her dementia symptoms.Even before she became ill she would never go.She enjoyed doing things with me and my daughter.Hubby refused the day care but so cherished the out side interaction.He loved to go to his favorite dinner.Then I would take him out in the wheel chair.His dementia was not as consistent at that time.

Senior Adult Day Care is great for socializing your home bound LO. It is very important to keep your LO active. Just think how you would feel if you couldn’t go anywhere. My mom who has both PD / Dementia goes about twice a month. There she can meet with her peers and enjoy time away from home and I know she is safe. As DONSWIFE stated, cost may be a factor, so I suggest checking with your local Senior Source Center. Many cities and towns have a Senior Center that may take your LO as long as they are accompanied by a caregiver. We have a great a local director that welcomed my Mom with open arms, they made sure she didn’t feel out of place.

I’m sure Day Care helps with a transition but it can also keep your LO at home longer because they function much better when they have a chance to socialize with peers.

That sounds like a perfectly logical idea to me.
I don't have personal experience with a move so big, but I do know that after spending so much time in familiar surroundings (home) with people that he knew and trusted, once Don entered the hospital and was treated by strangers - as kind and trustworthy as could be - he entered a quick downward spiral.
If he would have had pneumonia and recovered (instead of the congestive heart failure from which he did not recover), he would have returned home in the mid/late dementia stage.
If an adult day care is in your area and is within your means, I would strongly recommend urging your loved ones to attend for as long as they can. Gently exposing them to different
situations could save frustration on many levels.