The single biggest reason I like working from home (I have since July 2004) is that I don't have to "get ready" for work in the morning. That's the worst if you ask me... I don't mind the travel time or being "stuck" in the office all day... which I was for 4 years before that. I do miss the interactions sometimes, but it's little to give up.
The company has expectations and all you have to do is deliver. People disappear for afternoons, etc. but there's no micromanaging... I have yet to meet my current manager in person. My previous manager I had only seen twice in 2 years. As long as nobody is complaining about your output, you stay under the radar and that's all anyone wants. It's definitely win-win. I haven't been fearful of outsourcing here at all.