I think what we did is much more similar to what you describe, with the crate door left open, so she didn't feel isolated when the other pets and humans were in

I think what we did is much more similar to what you describe, with the crate door left open, so she didn't feel isolated when the other pets and humans were in other rooms. we moved the crate upstairs and left the door to it open, and she took a liking to it as her own space, and would choose to go sleep in it like it was her bedroom (or whatever), but having it at the distant end of the house clearly alone for the sake of isolating her is what I found counterproductive.