]In spite of being so fond of Anne, and doing what she thinks is right, she really does not understand her at all, does she?

But we don't know that Bath will be "bad" for Anne. And it very well could be that Anne's reasons for disliking bath are exactly as LR says. :-)

Also, there is no way that Sir Walter would ever have found Anne's economizing recommendations acceptable to his vanity, so I think this is why LR supports the retrenching option.

Lady Russell offers an informed opinion; she spends time in Bath each year, so she has a grasp of all it has to offer in the way of cultural and social opportunities.

She does want the best for Anne. It has always bothered her that Anne is left out of Sir Walter's annual trips to London with Elizabeth. She knows Anne has a good mind, and that it needs stimulation; she wants her to have intellectual opportunties such as those that are available in Bath. While it may not bother Anne that she has been left out of these excursions, is it really in her best interest to remain as practically a wallflower in her own home?