I get what you're saying, but I believe that a flat policy either yes or not, is a sign of piss-poor management, or too many employees with nebulous work that isn't being measured. Further, if I was a productive employee at one of those companies, I would stand up and say so.

It's not about the people. It's about the position (unless the person identifies that they should not do X because they are easily distractible, but then, that's where the business case comes in). If a position is deemed able to be WFH, then the position is WFH. If a position is not, then it is not. Based on duties and expectations.

Management is about setting expectations and measuring outcomes while providing appropriate support for staff. If the expectation is that you can work from home and produce at a consistently acceptable level, then that's great. And when the easily distractable person falls behind, you either develop them, or get rid of them.

That's not heavy handed management. It's just management. If it's too heavy handed to measure how productive people are in some fashion, then what even is the point of management?

The thing you said just seems like avoiding measuring someone's output and avoiding confrontation. It sounds toxic.