This was a startup, that had one big problem: a CEO that believed he was better than any and all of his workers at what the workers did. He also believed that collaboration was important, as through discussion, everyone would agree that he was right all along. You can imagine how unhealthy someone like that can be.
In a remote world, dealing with problem people is easier. The amount of acting one has to perform lowers. The lower visibility also allows people to self organize: Ignore coworker A as much as necessary, yet pair all day with coworker B, who is useful. Is someone very loud, or getting into other people's business? Being far from each other can help!
It didn't take 8 weeks in-office for all the coping that people were doing to become clear to everyone in the company. A CEO that was manageable via short interactions became an unavoidable thorn into the company's side, as remoteness covered their weaknesses. An open office didn't help matters. Everyone that wasn't a founder knew this was all untenable and quit.
So a team can definitely be far more productive being remote, as remoteness mandates far less gelling. Local conflict often has explosive results. People you dislike become far more tolerable. And really, every company ends up getting people like that, and sometimes chooses them over those that are team builders: I've seen my fair share of horrible managers that cost a company money in supposedly high performance, well known companies, and I have yet to see one getting a Pip out of it.