Right now I have a few work-from-home days a week and I find I'm enormously productive on those days due to lack of interruptions. If the company cannot sacrifice face time and trust for higher developer productivity (even in the name of teambuilding) then I wouldn't want to work there.

Team productiviy > your individual productivity. It's that simple. Do you think your team members interrupt you just for the fun of it? No, they interrupt you because they need your help to accomplish something. As a resource to the team, you hurt it's overall performance by making yourself less availble.

Team productivity is the sum of individual productivity though. Having all of the individual productivity disrupted is going to lead to lower team productivity.

I think Joel said it best 13 years ago: http://www.joelonsoftware.com/articles/fog0000000068.html

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"Here's the simple algebra. Let's say (as the evidence seems to suggest) that if we interrupt a programmer, even for a minute, we're really blowing away 15 minutes of productivity. For this example, lets put two programmers, Jeff and Mutt, in open cubicles next to each other in a standard Dilbert veal-fattening farm. Mutt can't remember the name of the Unicode version of the strcpy function. He could look it up, which takes 30 seconds, or he could ask Jeff, which takes 15 seconds. Since he's sitting right next to Jeff, he asks Jeff. Jeff gets distracted and loses 15 minutes of productivity (to save Mutt 15 seconds).

Now let's move them into separate offices with walls and doors. Now when Mutt can't remember the name of that function, he could look it up, which still takes 30 seconds, or he could ask Jeff, which now takes 45 seconds and involves standing up (not an easy task given the average physical fitness of programmers!). So he looks it up. So now Mutt loses 30 seconds of productivity, but we save 15 minutes for Jeff. "

This is generally untrue in my experience. Team productivity is usually limited by a bottlenecks and silos where progress stops. It seems counter-intuitive but you really can go faster as a whole by slowing some folks down. You don't get faster as a whole until you get your critical bottlenecks in the process faster.

This isn't through any fault of their own, but they just can't be "in the loop" as much. Most communication takes way too long to type out in e-mail or IM, so you need to get them on the phone -- but calling and getting transferred, and then they're not at their desk, etc., is just too much of a pain. There's a HUGE difference between waiting until you see that someone is at their desk, and repeatedly remembering to keep trying to call them -- or sending them an e-mail to call you, and then you're out.

They can't see when someone on your team is having a little difficulty and instantly help out, turning someone's hour task into 5 min. They're not involved in the informal meetings behind someone's screen where a feature is changed slightly. They're just missing out on a lot of "informal" information that is crucial for productive development.

And even over the phone, I find it's much more difficult to explain things and make sure they're understood crystal-clear. Sometimes you need to see the understanding in their face. Sometimes you need to draw, sometimes you need visual aids, sometimes you need to pull up a web page, but it's too much work to pull up videoconferencing or something.

In the end, all these problems are "technically" surmountable, sure, but I've never seen it work. Maybe remote work would be fine in a waterfall-type development model, but with modern-day "agile" development, it just doesn't work as well for collaborative teams.