I've been working strictly remotely for 15+ years, and it takes a toll on you. When you couldn't socialise even with your close circle during the pandemic, it really burnt me out.
I do feel like hybrid is the sweet spot, or, at the very least, fully remote with 3-4 actual real-life meetups every year! That's when I enjoyed remote work the most, and if I had a local office to go to with a couple of other friends, that was even sweeter. All of that with the caveat that people do differ, and commute times need to be I do think you are off on one point:
> why should they page a German wage for someone who is a face on a screen, when they can pay a fraction for that same face broadcasted from a few hundred kilometers further east or south?
Assuming you mean "pay" instead of "page", remote IT jobs have seen equalisation of compensation like no other field. This has raised salaries locally as well. I don't know exactly about the countries you refer to (I guess Poland, Czech Republic, Slovakia are the ones you hint at), but in Serbia, which has a lower average salary than those countries, I've recently mostly worked for a yearly gross salary around 100k €, which is relatively high even for Germany AFAICT. This has also led to increase in local salaries (because software engineers have an option of working remotely for significantly more if local salaries don't follow suit), where local net monthly salaries of €5k are not unheard of (which is probably like €9k before taxes). "IT professionals" are, on average, paid better than any other profession in Serbia, including managers and financial sector workers.