I would highly recommend partial hospitalization. I was in one for a few months. It helped me. I was not that severe. I was even holding down a job, while I was in the program. My peers in the program were not much different from myself, as far as functioning went.

In-patient stays, - IMHO - have much less structure/programming. Their goal is mainly just to keep you from harming yourself. Residential treatment centers tend to be for those with seriously impaired functioning or tendencies toward harmful behavior.

Ask your therapist why he/she is recommending the residential treatment center. It might help you to gain more social skills, by being immersed in the company of others round the clock. That would be a good rationale.