Even when I was bad at work/life balance when I first started working from home... I still saved an hour-and-a-half each and every day by not having to commute or iron clothes or make my lunch.
On the other hand, I think besides the commute itself is the freedom you get from not having to constrain yourself to living in places where the commute is doable. I work in downtown Seattle and I would love to move to the suburbs but I'm not sure it's really feasible to spend 45 minutes on the bus to get to work.