I think that the 'importance of face-to-face interaction' argument is a helplessly contrived one, an attempt to avoid the elephant in the room.
There are plenty of examples that show that working remotely without daily face-to-face interaction can work very well.
What's markedly different about environments that successfully adopted remote work are aspects like:
- a lack of cargo cult work organisation and office politics
- an atmosphere of trust rather than petty control freaks who need to constantly keep an eye on their subordinates in order to know they're still 'working'
- adapting to different forms of communication
When people say that they can't communicate as well with someone who isn't in the same room that doesn't necessarily mean that a remote setup doesn't work. It could simply mean they're just lazy and not willing to adjust to a different kind of work environment.
Working remotely requires the participants to be much more communicative because in such a setting communication for the most part doesn't just happen serendipitously, you have to work to make it happen.