This is a lovely balance. While the vast majority of my team is distributed across the country (and Europe, too), having the flexibility to stay at home or work alongside colleagues from other projects is great.
Need to focus on development one day? I'll stay at home, since it is more peaceful and my equipment is better (long live big screens with high refresh rates). Want to not worry about cooking and have lunch with other people? I'll go to the office.
I'm also quite active too. It can be a bit tedious, but walking at least 6km everyday does wonders for your health. Specially since I'm a type 1 diabetic.
Nevertheless, my contractor is far from perfect (I could rant for hours about how absolutely crap our company laptops are for developers). But it seems like these kinds of situations can only happen in small, compact cities; which is usually the case for Europeans and rarely for US cities.
I'd highly recommend hybrid to anyone who can afford it, but, as always, your mileage may vary