Yup. I wrote (in another comment) about the emergent behaviors that would come from that idea, and hiring discrimination is one of them.
At the same time (and I say this not as a point of argument, but as thinking through the thought experiment), I wonder if there should be some sort of legislative action to discourage the societal and environmental burden of these company policies.
For example, I assume that causing numerous people to commute multiple hours each day has some environmental cost. I also assume that there may be some economy of scale that benefits a centralized work force (heating and cooling one building rather than individual homes during the work day). Perhaps the electricity use for computers is better or worse. I don't know.
I'm a libertarian in philosophy, and I ultimately believe that people should be allowed to make their own choices about their own life. I also see the injustice, then, of treating corporations as people, which allows the one person who controls the corporation to have more power and influence than the person who does not own a corporation. It is the essence of "some people are more equal than others" from Animal Farm.
Again, ultimately, it is a thought experiment.
But, I can tell you, that I WFH. Next week, my employer has asked me to come in for a certain meeting, and it is a 2.5 hour commute each way. I get to count the drive as part of my work day. They don't need me to drive in very often. I like this arrangement.