I'm sorry about your experiences.
I don't think the Least Restrictive Environment was intended to cut students off from services at all. That's not the way it was intended in the Federal IDEA Law. The way the states AND the local counties implement that law is another story. I completely understand how closing the FB Gwynn Center might have changed your daughter's experiences - the same will happen in Calvert when they close the Calvert Country School. There will have to be an entirely different way to educate and accommodate those students, and I'm sure it will be much different than many of them are used to, especially if they have attended that school for a long time. I think that is the county's fault, though. Not the IDEA Law and LRE.
I have a different point of view of Calvert Country School when I first moved to Calvert back in 2005. I'd lived in 3 other states (Started off in St. Mary's Co, then to Va. Beach and then to Clay Co., FL) and none of the other states had "separate schools/centers" for the Special Education students - even for those students in that population who were the most severely affected by their disability. The students who required a lot of medical supports, as well as more accommodations, etc. were in a "self-contained" classroom, which in Clay county meant there was 1 classroom of that type for elementary school in the county - and it happened to be in the school down the street from us. So, my son went there. For MS, it was in a school about 20 minutes away and he went there when he went to 7th grade.
When I moved here and saw the Calvert Country School, I thought of it as segregating special education students from the regular education population, and I did not want my son to attend that school. He would never have gone to CCC, though, because he did not require intensive supports and accommodations. He DID attend school here in the county in a self-contained classroom, which may not have been the best for him socially, but it was imperative for him to to be able to be educated and, therefore, I considered that to be HIS LRE. It was, in hindsight, the correct thing to do for my son. He would have never learned in a larger classroom - he needed to have a very small ratio of students and extra teaching support.
I am of a differing opinion, and I feel that Calvert County can accommodate and educate our students from the CCC population in various ways which don't segregate and shelter them from the rest of the students in their respective grades. I honestly do view that as segregating those students, and it does limit their abilities to interact in the world outside of that school when they "age out" of the school and have to seek various support services as an adult from one of the agencies in the the 3 counties. (but that is an entirely different subject not related to the education topic!)