I’ve worked from home for over a decade now (on-and-off) and overall it’s served me – and the companies I’ve worked for – very well. Now of course I run my own company and have a home office.
It’s not for everybody, and it’s not suitable for every type of job or necessarily all the time. I do think it’d be good for more companies to consider options like part-time telecommuting as a first step. Doing this opens up their “skill pool” to include stay-at-home parents, which is a huge and awesomely skilled and motivated group of people.