So yesterday I learned that my godmother and sister had the "big talk" with granny. I am kept out of the loop.

My sister had a meeting with the social worker who said granny shouldn't live alone.
So they told her she will be going to assisted living. I was told she was kinda quiet in response. She got really mad when they told her she couldn't drive anymore.
She is also diagnosed with dimentia.
She remembers she has a daughter, and her name, but doesn't remember that she has been dead for 5 years. This came up because the nurses asked my sister why her daughter hasn't visited. My sister had to question granny on this, just to see where her memory is. There was crying. Granny seemed to be more upset that she cannot remember this.
Granny complains that nobody comes to visit her. The fact is she has been visited by friends and family nearly every day.
My sister also learned that she is older than we thought, and her birthday has been wrong all these years. Sister found her birth certificate in her house. Granny is 88.
They had a hard time keeping grannies sugar under control. Turns out all the people who aren't visiting her, are bringing candy and goodies to her.
My sister still insists on playing the "challenge her memory" game, which causes arguments. I don't know why my sister can't get it through her thick head to just roll with her memory loss, and not to keep throwing it in her face. The game consists of, basically, "I just told you X", "No you didn't", "yes I did", "no you didn't", "yes I did".
Now we have to go through her stuff and sell her house. We have a year to do so, though.
This is all difficult on a number of levels.
I have to get over my fear of nursing homes. I think I was traumatized by them as a child.
I also have to get over my desire to remember her how she "was", and go and see her, and accept her as she is now. Crumbling.
It's difficult to watch her waste away, body and mind.