I'm curious if your last paragraph holds true or not. The same thing was said about "digital nomads" in the freelance space. While it certainly got a lot of headlines and made a lot of people have some wonderful fantasies (myself included), the realities of being a digital nomad really kept the trend from taking off. Family, friends, a social group, the desire to put down roots... these are things pretty ingrained in society and are hard to overcome for all but a very small number of people. I wonder if COVID forcing remote work to the mainstream will actually increase the number of digital nomads (as per your last paragraph) or merely lead to a revival of small-sized (but more lifestyle-oriented) cities like your second paragraph speaks to.
If I had to put down a bet, I'd bet on your second paragraph (people moving to smaller cities) and bet against your last paragraph (people moving readily and consistently). I'd bet that it's not the job tying people to a city, but rather their social group.