However I will never get over the fact that we found some of our engineers ended up doing freelancing work, over-estimating work and basically just slacking around in the freedom of their homes.
I would love to hear if anyone had similar experiences or how they prevent such in remote environments.
On the other hand, I've worked other jobs where I was essentially ignored for weeks, even months at a time. I was left out of decisions, etc and just handed work to do. At those places, I definitely drifted off into my own stuff.
Empirically speaking, effective remote employees are more trustworthy and less prone to organizational politics. I can even tell you why: these people have a system of values outside of work that in turn values their professional activities as something that helps enable this desirable lifestyle. In return, work is treated with diligence and virtue.
I'm sorry that you or the person you're replying to have had a negative experience with remote workers. As usual, a few bad apples don't spoil the whole bunch.