Being watched by all colleagues all day is extremely invasive. I would definitely not want to work in this environment.

You just described every open plan office ever. At least this way nobody can look over your shoulder at your screen. And you can turn your camera off if you want a break.

Yes, open plan offices are horrible. No need to reproduce something just as horrible and intrusive when working from home.

I would just turn both microphone and camera off; if somebody wants something they can message me, like a sane person.