Jak, my MIL was actually in a Hospice facility (she was transferred from a hospital to the Hospice unit). It was set up to look like a home bedroom, not like a hospital room. There were 24 hour visiting which was nice. Staff were all caring and easy to talk to. In my MIL's case the staff helped the family prepare for her death.
I have known others that have Hospice nurses/staff come to the house. The level of care and amount of care would probably depend on the state of your MIL and could vary as her illness progresses.
It's a hard decision re. chemo, etc. I know my Grandmother decided herself to have chemo. Mom was at her side when she died at the hospital and she said she wished GM had not had to go through all of that. Hospice is not an option unless all treatment is stopped except to make her comfortable.
