They can definitely be a distraction, but I was able to minimize it by having an office with a door + setting reasonable boundaries. Also, they're out of the house at school for many hours (except for COVID -- that was a bit tougher, but that was the case for everyone).
I have no regrets. One of the reasons I WFH is to have less time on the road and more time w/ family. My oldest has said that he's glad I WFH, and that he didn't like me being away when he was younger.
Of course, every person/family is different. But for me & my family, I think minimizing the distractions in other ways while WFH + accepting the remaining distractions was worth it in the end.
I have a private office in our home and know that's not a luxury for many others, but the quality of life as a parent working from home vs being in the office is dramatic. With the kids home during the summer the noise and distraction levels do go up, but honestly are still less bothersome then the open office floor plan I was in previously. I think it really depends on your home situation as well as how your office was setup, but my guess is that a majority of parents would prefer remote positions if available.