I can understand for jobs that absolutely need you to be there (doctor, construction,etc), but I'm talking about customer service, executive assistants, and other office jobs.

Benefits to employers:
-lower costs (less real estate, utilities, transportation compensation)
Benefits to employees:
-lower costs (day care, gas, food)
-spend time with family, no commute.
Additional Details
If employers can't trust their employees, then maybe they should hire more trustworthy people.

A "working environment" can be effectively simulated at home. Being at home could even help employees become more productive.

These relationships can still be fostered online, regardless of where you are, you're still going to ask for help and you're still going to talk about your work. I think chat even facilitates that.