I'd argue that as soon as you have people sitting in different rooms (or at least floors or buildings), it starts to resemble a remote environment even on-site.

I'd argue that as soon as you have people sitting in different rooms (or at least floors or buildings), it starts to resemble a remote environment even on-site. I don't think people who work best on-site only reap the benefits if everyone they could possibly interact with is near them. There's models where teams within one company are either fully co-located in one place, or fully remote. Also not an "everybody wins" situation, since then what you can work on is limited by where and how you work. But that's not what it's about in my mind. When people with different preferences want to collaborate it's about finding compromises. Personally, I started to place more value on who I work with than what I work on, so for me this flies. It's not as easy as it sounds to pull off though, since it requires people to accept that some of their colleagues work best in a way they personally find wildly unproductive. Takes quite a bit of trust.