Why not? It's a part of my living space (which isn't free), it needs to be serviced with utilities, furnished, and structurally maintained.
I'd love this. I also suspect it would be a nightmare for a company to declare the tax around such things, even if they didn't mind paying for it.
If the company is reducing salary based on the employee's cost of living, it seems more fair for the employee to bill based on the cost of a desk or an office in NYC.
Specially when if you do business from home you can charge certain expenses to business and get tax deduction. WFH should certainly allow some similar tax benefits.