There are some good points here but I think it's partly because we are too used to how it was and have a hard time letting that go. We can't assess working from home in isolation as if everything else stays the same and only this changes. It'll have to be brought about alongside a mindset change.

While it might put one at risk of getting replaced due to outsourcing, it also opens up opportunities for them to get things outsourced to them which they couldn't due to the previous setup.

While not being in the office may hamper one's career progress may be true, we also over look the possibility of having to put up with socialising and other corporate bullshit to progress at work over actually doing your job. With this kind of setup, values and skills may get more focus over charisma and just good looks.

For me it's hard to say how this will turn out. I think it'll be as boring as most other changes that happen in life where the actual impact is not nearly as severe as it looks from where we are now. Either way, I think the prospect of having the option to work from home for those who are willing and able is a positive outcome. After all, life is about having options :)