>I don't see it as cheating the employer anymore than one "cheats" an employer by driving to work instead of walking

Can you expand on this? I don't understand the anology

It seems like they're accounting for commute in hours worked, which doesn't make any sense.

Perhaps they're saying that the employer has to (indirectly) pay for a parking lot to accommodate them?

I'd say it's that driving is easier for you, but they get the same result - you attend as necessary. They shouldn't care how you get there as long as you do your job.