Hi, a guy who has managed a remote team for 15 years here.
What it sounds like to me is that they don't have someone doing the communication. I get all the bummers that is no face time, no hallway stuff. But we are systems programmers (he said generalists and I think it is sort of the same thing, everyone does everything, there aren't any narrow roles) and we have made it work.
Some ramblings on what works for us.
IRC is big. We're all on it, if there is no chatter I know something is wrong.
Weekly staff meetings. I hate meetings but the team needs to sync. So do those. Maybe even twice a week.
Phones. So much phone, you have no idea.
This is perhaps the biggest thing. Here's how we do design. It's all on the phone and it is all someone talking about a picture. Then the other person talks about the picture. Then the other person. What I mean by picture is we're trying to solve $PROBLEM and we have a proposed $SOLUTION and we talk about the solution. Someone leads because they believe they have a real solution. So they articulate that and the next person either articulates it back or proposes a change. When you go around the circle and everyone says the same thing, you are done. Start coding. Don't code before that, you need to have all the people seeing and saying the same picture.
We've made it work. It has not been easy and someone needs to step up and be the communication dude (that was me). That person has to see everything that is going on and know who needs to know what and make sure they either get the info or talk to the person who can give them that info. It's a lot of work. Many, many hours on the phone. But it can work, we've been doing it for 15 years, we gave you distributed source management as a result, all that work was with a team that didn't live in the same city.
I would not give up on remote teams so quickly, they can work.