That's a great idea, that I also support, but you'll have to convince your beloved private sector to trust their workers to be productive without the ever watchful big-brothery eyes of management directly upon them.

As long as virtually all companies treat telecomuting as a rare privilege rather than standard operating procedure it's just a dream.
And that's a private sector failure. Despite the fact that even the worst-case scenarios some paranoid rich asshole may dream up of lazy telecomuting workers the productivity losses will still be significantly less than the money he'll save on renting prime office space in the CBD.