> Engineers that I consider "good" or better not only must be on site most of the time, but they WANT to be on site most of the time. It's the only way to maximally impact whatever it is you're working on, and any good engineer wants that.
I know a lot of excellent programmers and have never heard anything expressed other than the precise opposite of this sentiment. None of them want to be on site if it can be helped, and they pretty much universally believe that physically transporting one's self to a real office on a daily basis is an outmoded practice.
I don't doubt that there are good people out there who like coming in to work in an office, but in my experience there are a lot who do not.
You say that you've been unable to get consistent high output without forcing people to be on site. I've seen lots of people produce consistently over a period of years without ever once setting foot in any office (frequently when there is no office to set foot in at all). Perhaps the problem there is not with remote work in general....