I think you'll lose some talented employees if you don't allow WFH. I think it will take time to see how this plays out.
I think you’re right, because many employees prefer wfh. But I think for companies and esp startups wfh is a big loss, so that losing some employees is worth it. And if the bubble pops things will change.
There's definitely room for a hybrid where teams (or whatever org-unit) are able to determine which days will be in-office and what hours people are expected to be physically available for during those days. I don't really need to go into the office 40 hours (plus the 5-8 hours of commute time), but I'd have no objection with 3-5 hours, 2 days a week to facilitate meetings, teambuilding, etc.