A lot of people outside of urban centers have spare space and the money/time cost of their usual commute adds up. But, absolutely, there are many people in cities who have low commuting costs and their apartment is basically somewhere to sleep. I can't imagine working remote like that is sustainable long-term. Many will have to move into a larger place or rent a co-working space.

That's 35min a day you don't have to spend. That's 2.5 hours a week.

No, that's 35 minutes of physical activity they have to make up some other way.

They're free to spend that time doing whatever they want instead of being forced to travel to a location. That's the freedom they gain.

Of course they can continue to spend that time doing the exact same walk if they want, no "make up some other way" necessary.