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If your mom is presently totally independent where she lives, she should be the deciding vote in what she will do with her continuing independence.
If by choice she prefers to move with Dad, her wishes should be accepted as her choice.
To sum up- please express your opinions with love and concern, and I’ll consider them, but if I (or my spouse for that matter)is cognitively intact when a decision needs to be made about where we should be, we’ll make it!
UTI's can cause confusion, they do not "cause" Dementia.
I think as we age and so much else is going on we may not notice a UTI and if you are already cognitively impaired missing cues of a UTI is easy. (I am, I think, "with it" but I got a call from my doctor's office telling me to go pick up a prescription, they detected a UTI after some lab work. I had no idea that I had a UTI!) So some may have symptoms of a UTI while other times there are no symptoms.
To keep your Dad home and safe, do you have any other family members or close trusted friends that can stay with your father for safety while your Mom leaves the house? My Father in law signed up for an Eddy program that came to the house, picked him up and brought him to their facility for the day (like an adult daycare), and brought him home at the end of the day. It ran M-F and he did not have to go every day, but he could if he wanted. A suggestion of options to keep him home and safe if you would like to go that route.
Did they do a culture. If Dad is worse it could be the antibiotic they are using. Moms had penicillin in it and she was sensitive to it. A change of antibiotic perked her right up. UTIs are serious in men. They seem to get septic easier than woman. If he pulls thru this, a cranberry tablet a day and a probiotic may help. Plenty of water. Also would have his prostrate checked out.
As for the UTI's, for some reason they can cause weird cognitive effects in older people, unless dementia was already present generally this doesn't last long once the infection is treated.