Two counter points:
1) I want to be paid _more_ if I'm working from home. My employer doesn't have a right to use my personal property (my home, my energy, my coffee, etc.) without additional compensation.
2) Driving up compensation regardless of location is a great way to incentivize monopolistic behavior (e.g. FAANG) over the talent market while making it more difficult for new / smaller orgs to compete for talent.