I know a few folks from http://houseogames.com

From what I recall, it didn't really pan out, but people grew wiser and better at what they do, so that's good.

Personally, I got some investment money and almost all the developers included in my current projects live/lived/will live in a big place with me now. I think it works because of clear hierachy, discipline and common concrete goals.

In a commune-like system, you'll get a bunch of extremely individualist personalities and not much of a team, unless planets lined up.

Which reminds me, I need to start distributing morning coffee to their pillows and round 'em up right now.