Yeah. It's not so much about distance, it's about time. Better infrastructure for moving people in and out of the city enables a larger city, and a more populated one.
If you want better infrastructure, invest in light rail.
http://www.iwillride.org/what-200-people-look-like-driving-c...
I spent ~10 years living in Europe. While there was still a lot of traffic, huge numbers of people took rail. To me, the cities were much more livable than the average NA city.
I would bet most people have to drive in primarily because there manager did it that way when he/she was in the developer role.
Working remotely is friendlier on the environment and saves time commuting. It's also cheaper for the company and more easily scales as head count increases.