I think working from home would be very challenging because of the distractions, especially the desire to constantly check social media. In fact, the thing that appeals to me about teaching is that technology isn't a distraction and that you're engaging with people (students).But my observation is that many people have a very difficult time working from home. They need to be in a dedicated work environment to be able to focus on work. The home environment simply is too distracting. Others simply want the strict separation between home life and work life that's possible when working at a business office.
You also have a good point about separating your work and home. I think this is very important. If you don't do this, then you're always checking your work email after hours, and just never seeming to take a break in general.
You also don't have to commute anywhere, which can be good if you live in a big city with lots of traffic (not an issue in either place I live, but definitely so in larger places).
Somehow, my parents have managed to make tons of real friends through work. That's how my mom and dad met! So yes, it is indeed possible.And there are people who thrive in office settings. Contrary to the experience of some others in this thread, there are people who find they actually like their coworkers; actual friendships develop sometimes.....amazingly, coworkers sometimes fall in love snd get married (seriously, this does happen)