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One thing is for sure: the last thing I would want is my mother to move in while I have my hands full with teenagers and their raging hormones. Anyway, whether your mom is pulling her own weight or not, it's still your sister's home ... and her rules.
If you take sides, one or the other is going to feel betrayed and you'll never hear the end of it. So don't. Instead, talk with your sister about assisted living. That might be enough to get Mom to compromise.
If you're not at peace when you come home after a hard day's work, either you're living in the wrong place or with the wrong person. So I can understand the stressful battle of wills your sister is going through; and I don't blame her one bit.
Barring a mental illness, both of you should put your heads together and make your mom an offer she can't refuse. And mean it.
-- ED
Don't feel guilty because no matter how much you do for some people it is never enough. They will suck the life right out of you. Take care of your own family, continue With the phone calls and quarterly visits but don't feel like you aren't doing enough.