Yeah, that is a downside. I know a very well regarded professor of organisational psychology and work looking at that very issue. Hence the blended approach is the recommended way to go.
I get the psychological considerations. It is well proven that people have very different needs and motivations in the workplace.
A strong need for affinity with others, being one such personal preference that could mitigate against some individuals enjoying, or performing well, when working from home.
That doesn’t make the choice binary though. Small local office hubs away from city centres, particularly in the commuter towns around London, are now opening for this purpose.
That’s where organisational efficiency, productivity, employee wellbeing and individual choice, should trump Government and their property developer mates’ preferences.