Plenty of people are making that bet. Work from home is important to a lot of people and its not something you can take away without employees seeing it as a pay cut.
So if my pay is being cut, and you are taking an extra 2 hours of my day in commute again, then I guess that becomes my reward for hard work?
To be fair the dynamics do change from business to business. My current one is a good example of making poor decisions with workforce and not expecting the blowback.