Statistics can prove any argument correct or incorrect...
There have actually been studies that have shown that being in a house with a dysfunctional parental system is beneficial to children based on there being a steady "safe place" that a child finds for themselves. There is nothing that says that dysfunction will last forever unless that plug is pulled completely. There will always be hope at least, that things will change. And they typically don't have to choose which parent is the good parent or the bad parent in order to feel that they aren't abandoning one or the other. They view both equally as good and both equally as bad.
Not my study, yet it has been done...
The absolute best 2nd place (coming in behind a healthy both-parent house) is actually the children being able to stay in the marital home with the parents rotating custody within the shared house. They have the same bed, address, and social hub consistently. They don' t have the feelings of why they have to adapt simply because their parents can't get along. They aren't packing a bag every 5-7 days, or feeling like they have to choose whether they like Dad's house, or Mom's house better. They aren't sitting by the window, watching for a 'late' parent to pick them up, or watching the clock to make sure they aren't late on arrival. It alleviates disturbed sleep patterns, and guilt over 'leaving' one parent all alone for periods of time.
Essentially, their stability becomes the most important thing...