I cant stand it when people put out these blanket statements in the form of objective facts. If I'm in a group team huddle with our cameras on - I'm able to pick up on body language, I can see their faces and we can all exchange ideas at the same time. As far as somebody talking over somebody else you can split into multiple groups if it's too big, you would have the same issue in proximity.
You seem to be under the impression that social interactions can only happen if we're all breathing the same air. The only thing that being on site would add is potential tactility. Do you find yourself hugging and touching your coworkers a lot?