It works and is part of the whole solution. A clear downside is caretakers/food delivery can get infected, but it is much harder to spread.
The data shows that isolation is helping [1], China minus the outside world shows diminishing new cases in China.
[1] https://www.worldometers.info/coronavirus/coronavirus-cases/
Corona is closer the flu/common-cold in terms of transmission.
Quarantining patients is too late. The viral point is the 14-21 day incubation period where patients aren't showing symptoms yet very able to spread the disease, which is the whole reason why it's so scary and affecting the world markets.
If Wuhan removed home isolation and everyone was allowed to go back to the old way of life, the virus would spread again.
I'm not sure how you can argue against home isolation. I haven't been convinced of what you claim; that it isn't helping.