I don't think one lifestyle is always better than the other. It's freeing and maturing to leave the nest, especially if your parents are the overbearing, smothering type. And there are plenty of parents who are glad to have the kids move out so thery can enjoy their own space, peace and quiet again.
But it's also great for the next generation to be able to run over to grandma's, and have aunts, uncles and cousins around too.
If it makes financial sense for extended family to live together, and everyone can cooperate, contribute to the household responsibilities and respect one another, it can work. But IMO, it's not the ideal. I think the best case scenario is to live with who you really want to live with. But if I had grown up in an extended family household, in a country where that is the norm, I might feel differently.
I think people should take care of their elderly/ill parents, unless there was an abusive relationship.