While you may enjoy working with the people you work with, and meet them daily, this typically wastes time.

Several studies have shown that the typical person wastes half of his/her time socialising with other office employees.

besides, telecommuniting also allows you to eat healthier food (in your own home/home office) rather eating out every day of the week.

documents can and will probably be stored locally. that is not a problem.
the problem as you said is bandwidth. and while microsoft might rely more on modernised societies like the US and Europe, in other countries around the world bandwidth is still expensive..
i have no idea how their cloud OS is going to fly !