That seems to be a huge straw man. "Interactions with peers" doesn't have to mean "going into an office for 8 hours, 5 days a week". I know plenty of (pre-pandemic) fully-remote people who get tons of interactions with their colleagues. And I know others who, yes, do want to keep that interaction to the minimum necessary to get their jobs done. Both of those situations are fine.
Work is not the be-all, end-all of existence. While I have made many good friends through work, and some (though not most) have made the transition to non-work friends (the true friendship-type test is when one party in the work friendship leaves the company), I have very little need or desire to socialize at the workplace these days. I get plenty of interaction outside of work, and that's how I like it. I certainly recognize that others want more interaction through their work, and that's fine. But you don't need to drag me into that to get it.
It was a very, very rare thing for most people for all of human history until the Industrial Revolution. Yeah, a lot of people helped build StoneHenge and the Pyramids, but most people were just farming (at home) or else hunting/gathering in family units.
having distracting kids at home is not an "undesirable home situation", in fact its a great home sitaution, so great that it makes it impossible to focus on getting work done because i'd rather just play with my kids. there is a reason most workplaces don't typically have your children in them.
the fact that so many are happy being isolated at home with no real interactions with any peers is concerning in itself.