I've worked from home on and off for the last 10 years. The best bit for me is definitely the freedom and watching your kids grow up.
I'm currently working on the sofa, dog curled up by my feet, watching TV :) Most days I take a bath at 2pm. Rock n roll!
(Funny sketch about working from home. Don't click if you get easily offended http://www.youtube.com/watch?v=co_DNpTMKXk )