For workers, WFH gives immense flexibility and opportunity. You are no longer tethered to work in the same vicinity where you live. This gives you both personal (e.g. be close to family, be close to a beach, etc.) and professional (e.g. work for company in another city, on the other side of the country, etc.) opportunity.

Remember too that WFH opens one to increased competition from others who could do one's job who live in a much lower COL area

Right, so it is a tradeoff that a worker can choose to make: work for a company that doesn't have WFH/remote work or one that does. Each has their benefits and drawbacks.

PG has all the answers:

http://www.paulgraham.com/badeconomy.html