Here's the thing about allowing employees to work remotely. It works for some jobs and *some people*. Clearly there are people who can work remotely and get lots done, usually even more done. These people have motivation and self-discipline. However, I don't know if you've looked around, but self-discipline isn't something that *most* people have. Given the chance they over-indulge in everything from junk food to credit to addictive forms of entertainment even while abstaining from all of these things would be in their own long term best interest. As a manager you certainly wouldn't want *those* people working from home.
So... a company that allows workers to work from home has to be able to say "no" to someone with no self-discipline. This is the *right* thing to do, but it's a potential mess for management. "Sue can work from home and I have the same job, same responsibilities, and same glowing employee evaluations as her, so why can't I work from home?" "Well, I don't think you'd actually function well in that environment." "Why?"
I'm not saying it can't work, but do you see how, as a manager, it's easier to just make everyone come to the office?