I completely agree with you. What I'm curious about is what about work-from-home that director-level-and-up find so objectionable? I can't imagine that strolling by an open office once in a while to see people in cubicles is that fulfilling.
To help spur your imagination, may I recommend a reading of the “Gervais principle” series by Venkatesh Rao over on ribbonfarm.com? :)