Is it okay to set limits?

SIL on hospice, trying to set rules and schedules, bedtimes, dog time etc. My SIL is only 52, she has CHF, PSORIATIC arthritis, Breast cancer, fibromyalgia, and end stage liver failure, and psycosis plus she had a large hematoma removed from her brain last month. We have put her in hospice 2 weeks ago in my home, she's been living wit us almost 4 years. Most of the time she's been easy but now she's super demanding. I used to let her dogs run around but had tile floors, now we've moved to a new place with mostly carpet, so they have to be in her room or outside and she keeps wanting them in and out and I'm trying to limit that. I myself am not a dog person and have never before had animals in my house. I'm refusing to let her smoke because the hematoma, she could have a stroke. She also wants to be wandering the house all hours of the night and I'm now limiting her to her room from midnight to 8 am because she is altered and can get hurt. She falls quite often, at least once a week. I have a baby monitor to try and keep track. She also keeps tearing off her clean bedding and trying to cook and do stuff she hasn't done in years. She bounces from being almost comatose to highly active every few days. I hate limiting her but she's demanding all things at all hours. She's walking using a walker. Right at this moment she's "cleaning" her room, but only really making a mess. No one really knows how much time she has, cirrhosis is unpredictable, I'm prepared for a day, or a year to be honest. Part of me wants to let her do what she wants because she's only got "so much time" yet I get no sleep and am trying to keep up part time schooling. Also, when her ammonia levels are high and she's extremely altered and she cannot stand, is it okay to use the lap restraint on her to keep her from falling out of bed? It's the one they used in the hospital, and only when she is unable to stand on her own and only at night.