Nah how about we all work from home 2 or 3 days a week. People will actually do that and it saves not only the city but whole bunch of other things for the employee and the employer.
People remoting might have a detrimental effect on cities. Some business (especially restaurants) make the majority of their money off of regular customers during business hours, these are extremely healthy businesses for a city economy.
I don't disagree that we should probably all remote more, but don't think it it all up sides.
Yes, it'd be really interesting to see cities try to develop that as a partial solution to congestion and pollution. Offering a formal 3/5 days telecommute option for a large enough portion of your workforce should qualify for some type of rebate, subsidy, or credit.
Interesting idea, but the law of hidden consequences will surely bite in some form or another. For example, the aggregate of employees' houses is almost certainly less efficient energy-wise than their offices. I feel confident that many neighborhoods' internet service would struggle under the weight of simultaneous videoconferencing from every house.
