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Does Telecommuting Restrict Innovation and Productivity?

A Yahoo Inc. internal memo, which introduced a ban on working from home, has set off a debate on whether "telecommuting" and working remotely leads to greater productivity and job satisfaction, or kills creativity and is just a chance to take it easy. Supporters of this kind of ban say that the best decisions come from in-person discussion, and that remote work is often done slowly and less carefully. Many telecommuters, however, say that a remote arrangement helps people with young families or those facing long and expensive commutes. A restriction could also undermine employee trust, as working is not necessarily done in the standard 9-5 hours anymore

What do you think?