There are times I want to be in the office. There are times I want to be at a coffee shop. There are times I want to be at home.
As an executive, I feel like it's my job to provide as much flexibility to my team as I possibly can. Inspiration can strike anywhere, in any environment. I want to capture that for my business. I find that people really appreciate it as well.
Really it comes down to meeting management. Limit the requirement for face-time and structure the company in a way that you can minimize how often people have to collaborate. I find this makes the voluntary (and spontaneous) interactions even more valuable.
The Yahoo decision really bothers me in a really visceral way. My team is made up of highly skilled professionals who deserve to be treated like adults. Forcing them into the office is the opposite of that (at least to me).