I know that my team's direct manager has huge respect from all of us (and the upper management as well), he keeps our projects on track, gives us the tools we need, and makes sure any obstacles in our path are quickly removed. And as with any good team, he steps out of the way and let's us work. Thinking about it, the biggest issue I've had with management in the past is not knowing when to get out of the way, I think remote work makes this easier.
The strange thing I always find about the common critiques of telecommuting is that there are many successful oss projects that are run entirely distributed and large communities, like HN for example, that probably have more social complexity than a similar sized physical group. Surely there are certain HNers who have you respect even though you've probably never even had a 1-on-1 chat with them.
A friend of mine for a while managed a small non-telecommuting team as a telecommuter, but went back to an individual contributor role after that.
His theory was that telecommuting for an individual works if that individual has a "telecommuting mindset" (self driven, communicative, etc). In order for telecommuting to work for a manager, all his subordinates need a "telecommuting mindset" as well.
I think the telecommute aspect is really a non-issue for some people. Companies would be wise to consider it for the low overhead.
Not to mention only really wanting telecommuting does potentially imply less commitment to the company and/or position. That might be a turn off for a senior role.