Experienced developers can work as well as, or better at home. Even in a startup; especially in a startup where time is important and commute can be expensive that way.

I work on embedded frequently; I have way more than $20K of equipment on my desk right now. Not to mention old projects in boxes and on shelves. That's absolutely not an issue. If I need it and need exclusive access to it, in the office or on my desk is all the same.

And measuring output? Why, by performance of course. And by the value of the work done. So I can earn well on embedded work whenever that comes my way, because its not a common skill and I can do it quickly. The market sets the value; there's no mystery to this.