I still have 1:1s with my manager, am still accountable for my targets and organizational goals, and generally do the same thing whether I'm WFH or in office.
Office work has several advantages: 1) I like discussing in person with coworkers - sometimes coming up with fun/interesting ideas 2) office itself is more conducive to a particular type of work 3) I get some isolation from the family
But that commute...
Used to be, you could live close but maybe not the best neighborhood.
Now everything that's not some new exurb 1hr+ away from medium-large metros is insanely priced.
You could have smaller offices in different neighborhoods, but there's usually not enough people in any given suburban area to justify an office. Co-working spaces are one compromise but larger companies dislike them for security/secrecy reasons.
I would also add that many people have reasons for not moving closer to work even if they could. Also people are no longer working for decades at the same job, and moving is a hassle if you're changing jobs every few years.