My last job was 95% telecommuting. For me, that was actually a little too much. I found that I missed the interaction with the other team members. (Of course, that could be solved with proper setup of online sessions.)

Now I'm working as a consultant and have a varying mix of in-office and telecommute work time. As long as I get the job done, nobody really cares where I am. In fact, my next assignment may very well be part telecommuting, part commuting to the opposite coast. Now how's that for extremes?

The key is knowing your strengths and weaknesses (as in everything else) and finding the right balance for you and your work.