Maybe, but people have learned to value their lives outside of work more than they once did; spending time with family and living outside of a big city (if that's what you want) is a huge draw for people like me.

Sample size of one, but I've thought about this a lot, and I decided I would hand in my notice if my company unilaterally demanded I physically present myself in a building for several days per week. I've never worked on-site in this job, and been consistently ranked highly in terms of productivity and responsibility.