I've worked at home since 1996 and there is no way in hell you'd drag me back. I never had a problem with isolation, but then I have kids. Isolation for me is a goal, not a fear.

In this, as in all things, your mileage will certainly vary. If you're a type-A people person, you should probably stick with a social context. Although (as elsewhere noted) you'd be surprised how much social interaction you can have online at home these days.