The „on average” is key however. I’d say that most of the people don’t understand the cost of remote work until it hits them and simply not all can bear that cost.
It’s not like people are unwilling (occasionally you can find slackers) but it’s more often things like issues caused by functioning without micromanagement (which is the case in many companies), problem with written communication skills, communication process not efficient for remote work (e.g. water cooler knowledge share which is foundational for people breaks without water cooler) etc.
Then there’s self-drive requirement that can easily be extinguished by home conflicts, non-prepped environment or depression coming from isolation and lack of physical movement. Efficient teams are more difficult to create when there is no space for people to bond over non-work (team pizza/social events)
From my experience, both remote work proponents and opponents are right with their arguments but the crowd cannot be generalized. Some will suck at the desk, some will suck in remote.
As for „sit where I can see you” - that’s a standard offshoring practice, nothing new. You do get to the point of „who watches the watchers” conundrum sooner or later ;)