I'm certain that there will be an outpouring of hundreds of reasons why people cannot move, and I'm sure all of those reasons have merit. But it doesn't change the fact that long commutes are a huge detriment to work/life balance.
With the pandemic I've been enjoying being at home so much. If they force me to go back to commute I will look for another job.
Commute time doesn't have to be wasted time.
Your suggestion works for exactly one type of person, who has enough resources to outbid others for housing and either lives alone or has a non-working spouse.
That said I'd never ever have a 1+ hour commutes, 30 minutes is plenty but I have noticed a difference in inspiration this year and I put it down to this.
I was doing 90 minutes each way, four days a week, before; I'm currently not worried about going back to three days a week, although I'm a little curious if I'll feel differently once it happens.
I don't think about work outside of work, which includes commuting. I may have an epiphany while showering or talking a walk, but in the car I listen to music or podcasts. That is Me Time, not Employer Time.
People think that the things they do at the office (beyond work) are impossible to replace in "real life". They are, office is the actual virtual life
My bus ride is very valuable to me for this reason.
Try as I might, on the WFH days I virtually always wind up doing this same block of study after 10pm which is my free time.
I also get interrupted just as much regardless of whether I'm at home or in the office, so that's kind of a moot point in my particular case.