Exactly. Sometimes I wonder why I have to drag my ass to the office every day (I'm a Java/J2EE software engineer). It's about 20 km (12 miles) away, about half an hour's drive in good conditions, a little longer if the roads are congested.
Today, I am at home for awhile, on medical leave. I can access the company servers via VPN; the software makes my home PC appear as a node on the office network. The upstream is a bit slow, but all they have to do is to pay a little bit for more bandwidth and we'd be all set.
I can reach across the network, deploy applications, debug, trigger an automated build, transfer files back and forth. I can check my email, I can send and receive instant messages, I can, if I want to, chat on Skype with my colleagues in the China and USA offices.
About the only thing missing is the "enormous" 100 Mbps bandwidth on the local area network, but if you consider that the office rental is in the 5-digit range and 4-digits will get us a very, very good high-speed link ...
Okay, some people talk about the "human factor" and all that, yeah, maybe, but since when did we geeks need to worry about "human factor"

- well, perhaps a smaller office for us to do F2F meetings once a week or two, with a limited number of cubicles and seats.