Accountability is a huge factor in being granted the privilege. And except for outsourcing, it IS a privilege.
Having the ability also makes it possible for some of to continue working when others cannot even get to the office. In the IT world that can be a critical factor.
There is definitely a need for separation, however. If your work environment is not the best but, at least for the time being, it is what you have to do then there is nothing worse than living with that environment 24 hours per day. I did that while working in an office and it nearly cost me something very dear. Granted, it was a toxic environment in the first place and I am glad it is behind me but I head to learn to leave work at the office door. Once I did that, plus the drive home for decompression time, it was easier to compartmentalize those things and leave them at work...for tomorrow they will still be there. If you can effectively do that in the hallway between your home office and the kitchen, more power to you. If not, working from home may not be the best option for you.
Buy the ticket, take the ride. -- Hunter S. Thompson