If you start adjusting the workplace to fit the needs of the employee (gosh, how wrong that sentence sounds!) you end up in situations where it's suddenly justifiable to let developers use technologies unsuited for the situation because they're "fun" and "interesting" to use and keeping them happy means they're more "productive". Or letting middle management play politics because it keeps them happy and more productive. Or forcing people into open offices because some boss likes the feeling of lording over his subordinates and that makes him happy and productive.
I guess what I'm trying to say is - some basic levels of courtesy and human empathy are needed for any group endeavor to work but beyond that, decisions should be made in the interest of the business rather than what makes individuals happy.