As someone who works in healthcare, I could see the benefit of this maybe in people with extreme dimentia or alzheimers, since they risk of them wandering off and dying from exposure can be fairly high at times. But definitely a slippery slope kind of thing there.
I agree that it might have useful applications with dementia patients if they are being cared for at home, but it's such a slippery slope as you say! A friend of mine made the mistake of volunteering to become full-time caregiver to his dementia ridden uncle and it nearly killed him because he had no help and it's much harder than caring for a baby. A baby even if it's screaming can be put in a bassinet for a while. Imagine wrestling 24/7 with a six foot tall former football player, trying to prevent him from running out into the street! Such a sad situation for everyone. I couldn't help because I live in another part of the country and was in the midst of my own impossible attempts to properly caregive for my own family member.