The short-term situation is not pretty. But, long-term, it seems less and less likely that many people will embrace some weird "new normal", devoid of mobility and live human contact.
Lack of live interaction on the job has a serious impact on both relationships between workers and job satisfaction, which, in turn, reduces productivity. Work is not solely about performing some menial tasks to get a paycheck in the end of the month. It's something far broader than that. And, while many are not allowed to hold live meetings now and go for dinners with their business partners, this will likely not go on forever. Routine tasks will be transferred online (and that has been a trend for many years now, so it doesn't come as a surprise). But live interaction will still remain an essential part of the deal - just because this is how humans function.
It's not just a matter of individual choice but also of policy. While many governments encouraged home office at first, now the trend has already been reversed in many places. People start being encouraged to return to their workplaces - and for a couple of very good reasons. If everyone starts working from home, this will bring a lot of damage to the local economy. Commuting will no longer be a thing, so transport companies will shrink and fire personnel. Small businesses in business areas, e.g. coffee shops and barber shops, will fold up because there won't be anyone going there. Office buildings will become empty, resulting not only in job losses among the personnel managing and running them, but also in turning entire once-prosperous areas into eerie ghost towns - which, in turn, will depreciate any property situated there. Construction and real estate companies will start going under en masse. Banks will wake up to the news that the equity which secures their loans is now worth just a fraction of what it used to be.
Does this sound desirable so far? If yes, here's the possible continuation of the story... If the worker is working online and doesn't have to be physically present at any given place, then why pay them a first-world level salary? Instead, you can fire all the local workers and hire people from third-world countries instead, who are just as qualified but will be happy to do the online job for a half, a third or a quarter of the money the local will be asking for. If you think that this cannot happen, do some research on where about the call centres of many major Western companies are located. Outsourcing distance work to lower-standard countries is already a fact.
So, if we allow ourselves to become deluded enough to allow for "the new normal" to happen... Well, then we probably deserve it.