Whether remote work is a good practice or not is besides the point. I'd say, when done intelligently, it's a great thing. But don't you think Mayer knows that already? The bottom line here is that Mayer has to take a floundering company and turn it around. There must be something going within Yahoo! that makes this decision the right one. Yeah, there's going to be some blowback from employees and the media but at the end of the day it wouldn't be surprising if Mayer is reading all these articles and saying "Oh if you only knew what remote work is doing to this company...".
Remote work as far as I'm concerned is a great thing - but it's probably hurting Yahoo! more than helping right now. I wouldn't be surprised to see Mayer turn this thing around and reinstate the remote work policy when the dust settles.
It's easy to play armchair CEO, especially if you're a CEO, but what DHH is saying is basically "remote work is working for us therefore it should work for others". Well, it's great that it works for 37Signals but Yahoo! is a different beast and Mayer is not an idiot. It seems like she's willing to take some damage now to avoid a catastrophe down the line.