I think this is strictly worse than providing employees with the option of where to work (office/remote/some WFH). Something missing in this announcement is that you still need to live in one of the main cities with offices (SF, Seattle, Austin, Dublin) in order to receive full pay. Moving anywhere gets your pay adjusted to the "local market".
So to avoid a pay-cut you need to stay in an overpriced city, but you don't have a nice office with meals/snacks/nice desk setup that you can go to.