That is a big win for existing knowledge and process. How about creating new knowledge and process?
If creating new knowledge and processes is important to you you just have to invest time and money into it. I’m not sure what worker proximity has to do with this? To clarify (a simplified version of) my management approach is to find the current organisational bottleneck and remove it ad nauseam. This can drive immense amounts of new knowledge and processes creation.
I do think you write off the value of worker proximity too quickly though. Particularly many other comments in this thread are talking about the real struggles junior devs and interns are facing getting up to speed without in-person mentorship. Those are the long-term impacts I'm worried about. By moving to full WFH has an organization just broken their hiring pipeline and thus is now doomed to fail as people retire and they can't grow?
Judging from how academics across the world, and even across decades if not centuries create new knowledge all the time, I'd say it's not a barrier to work remotely, whether that's in time or space.