> Otherwise, they're forced into paying to buy/rent a suitable workplace, pay any incremental utilities, etc
I view this as just the opposite side of the coin of being forced to live physically near where you work, so you can come into the office. Remote gives you more freedom here, though.
I think part of the reason people choose to live in overpriced studio apartments is to live closer to their workplaces.
The pandemic was an unusual circumstance for forced remote work. Normally people would have a lot more options for where they choose to do that work, be it at a cafe or coworking space or at a library or wherever else.
As for utilities, Canada at least is providing tax breaks for people working from home to help cover internet, electricity, etc. I've never gotten a commute subsidy from my government.