The issue I see here is that because of that one day per week you will need to still be in commuting distance from the office which limits where you could live

The issue I see here is that because of that one day per week you will need to still be in commuting distance from the office which limits where you could live and increases your cost of living dramatically. In other words the company saves on office spaces but you still need to pay a premium to have an office at home. Going full remote with trips to the office once per quarter for example allows you to live wherever you want. That's the way I see this working well in other companies. Remote first and once per quarter everyone gets together for a couple days.