I definitely think she deserves criticism for stopping the work from home policy. This industry had a huge chance to move away from traditional office work to a much more flexible type of work environment. Her move put a significant dent in that.
You speak as if it's a foregone conclusion that working from home is a good idea, but not everybody agrees with that. So you're suggesting that she should have made a decision she felt was bad for her company to advance your personal agenda, and that's a little bit crazy.
That's not to say a highly or fully remote team can't work. Clearly it can. It's probably not ideal for a sinking ship like Yahoo, though. You really do need all hands on deck, top to bottom.
Don't like it? Don't work for Yahoo. It really is as simple as that. I like the move, though, given their specific situation.
Not so simple. First, jumping jobs for a lot of people is difficult. Second, it also set a trend in the industry. HP soon after started a program to make people come into the office.
It really is that simple. If you want to work for Yahoo, you'll need to relocate. Otherwise, there exists a full world of other possibilities out there for you to pursue (many of which embrace remote working).