At a previous job, I worked in a room with desk space set up in a large U shape around the room. Each of us worked in or near one of the corners, facing out (to windows, wall, or through the door out into the rest of the building).
I found that this worked well for both doing your own work without interference (headphones and music also helped) but also lent itself to collaboration. All I had to do to ask one of the other devs a question was turn around and speak up.
I really don't like the idea of facing toward other devs without some sort of barrier blocking my view, as I would think I'd find it rather distracting.