I really don’t understand the either/or dichotomy presented here. All along, Catholics have been called to different expressions of their Faith. That is why we have had hermits and preachers, missionaries and cloistered nuns, religious and married…
As a practical convert, I would have loved to be able to raised my children in a “pure” Catholic community, since I was learning about living the Faith at the same time as I was trying to teach my children. OTOH, I have heard about Catholic parents who were able to bring their children up Catholic immersed in the world by using to use the challenges of that lifestyle to strengthen their children’s faith.
To me, part of Catholic culture is that we are called to different things; we have different needs, and so we should have a variety of options. To say one group tends towards indifferentism and the other towards isolationism is weirdly not at all Catholic.