I'd advise against working from home for everyone in compliance with the separation of concerns principle as context switching is not easy at all and it will burden the person with a lot of stuff to sort out with regard to the work/life balance and the mixture of the incompatible job/home environments.

However, I'd definitely vote for and favor a more balanced approach that combines both remote work from a dedicated office that has been set up specifically to handle this type of activity that is independent and detached from the home environment, and the formal workplace to maintain the bond and harmony between team members.