> still believe that 'managing people' means real-life first person interaction, and are completely invested in offices

You hit the nail on the head. Senior managers who are unwilling to learn to do their jobs slightly differently are a big part of the problem. Imagine forcing an entire work-force to commute so you can physically stop by someone's desk to interrupt them vs sending a message or scheduling a meeting. Senior managers want productive staff, but instead of listening to what they need to be productive, they set up roadblocks to satisfy their own lazy vanity.