Has it? Other than some of the larger companies who desperately want to justify expensive commercial real estate, I'd say among my friends who are in IT that nearly 90% of them are all working remotely.
Also "Work less" doesn't convey the negative connotations you seem to think it does if they're meeting their contractual expectations.
This is a really good point. There is little advantage to taking more time ("working more") to produce the same output. (Not to mention other wasted time such as commute time.)
Unfortunately some managers seem willing to accept a productivity loss if it allows them to feel more important.
Also "Work less" doesn't convey the negative connotations you seem to think it does if they're meeting their contractual expectations.