My son was the nursing home and oncology ward "happy pill" when he was that age.
Doop doop dooping about. Smiling, waving, big sad blinky eyes and pats, unabashed laughter. Most people love kids. And in hospital settings, when you're stuck in a bed or chair, they become "babyvision" (like television). Esp with the elderly, their antics and youth make them happy. For the kids... they're Tgetting smiles and waves and tons of attention, which makes the kids happy.
There are places to explore, hallways to run down, adventures to be had.
It's a lovely age.
And they don't know enough to be scared. They just see people smiling at them and they smile back... or in pain, and they frown for them or come pat them to make them feel better.
It can be a GREAT tool for the emotional health of a toddler just learning empathy.
Now... if everyone is weeping, wailing, shouting... yeah. Keep her away. But that's not most hospitals, nursing homes, or hospices. Most are actually much more full of life and happiness than playgrounds.
Ditto, not everyone likes kids, even though most do. If someone doesn't want her around... it's a target rich enviornment... just move 20 feet to your left.