You're a bike ride away from the office that you prefer? Fantastic job of deflection.
It's rather obvious that there are trade-offs, isn't it? It's pretty clear to me, at any rate, and there's nothing inherently wrong with providing an office. Shame on your words coming out of my mouth.
In relation to the expense of providing "office space" for several hundred the cost of a fat pipe is pretty darn cheap, were that it existed.
If you don't have the need to live where you work there are "simple" choices any given person can make that will make their lives easier, happier and, hopefully, more fruitful for both themselves and their employers.
And besides, having worked in offices (real ones), cubicles (and half-ones), bullpens and open spaces (including fields) I feel I am more than qualified to provide my own opinion on the matter without implying that my "simple" opinion is somehow not compatible with your own.
Open spaces suck to work in. It's that simple.