I have been a DBA / Developer for about a decade.  During this time I have been on both sides of the fence - a manager of up to 14 people, and a (happily) simple employee with my head down doing work.  From a management perspective, I have never had a problem with people working from home on a regular basis.  I have one consultant workng for me now that is home three days a week.  He is good at it and gets his work done.

However, I have found it difficult for myself to work from home more than one day a week.  I feel I lose a sense of urgency that comes with production issues.  Yes, from anywere I can see it is important when a server is down, but if I am not in the office listening to people, I don't get a good feel for which applications are not working well.

Working remotely is a great perk for the type of work we do, but I think it really needs to be handled well and at least some time every week needs to be spent in the mix wih the users or work product degrades very quickly.