Telecommuting can be great for everyone involved. I did it for a couple years (3 days out of 5), and it worked out really well. I found that I needed less time to get my work done (no distractions). That, plus not having to commute, gave me a lot more time to get other stuff done (and goof off), and my employer didn't have to provide me a permanent office space.

There are good things about working at the office, too. The company of other adults (outside the home), while it does create distractions, can provide a much-needed break from family life with kids (and a spouse), for example.