I've been working from home for the last decade and I wouldn't have it any other way. No distractions and I am more productive than when I was at an office. I also have more time during the day to spend with my family.
I have the option of working from an office (my remote client is 10 miles from my home), but I have found that when I actually go into the office, I get much less work done (random distractions from management, etc).