I totally disagree that developers or software engineers cant work in an environment like that one. I am involved in a project with 10+ people and we definitely need to be together and discuss things everyday, so being in cubicles wont help. Plus, when I need to concentrate I put my headset and listen some music, which for me is the best way to concentrate and relax the mind.
On the other hand, even if we need some concentration, we cant be 8 hours with the head down working with the computer. "I am a people person", as said in IT Crowd series, and I need to be in contact with other people.