Telecommuter here as well and it is so, so worth it. With mostly everyone and their grandmother having a decent Internet connection, it doesn't make sense to have to sit in hours of traffic just to get to work. Granted, some places need a warm body on site, but if you can telecommute even for a few days, I highly recommend it. If you want to sit at home and fuck off all day, telecommuting is not for you. If you have a shred of self-discipline (as mentioned above), you can definitely be successful at it.
During the last few years I've regained my sanity and have become a more productive worker due to not having to put up with the distractions of sitting in a 'normal' workspace. Not to mention the hours saved sitting in traffic and the flexibility to pick up the kids, run errands, etc..