I agree with all your posts MrsKoala, it is my personal experience with my two teens, who left home at age 17 and 18 that the experience of having to make all their own decisions, work out budgets according to what income they have month to month, one at uni with p/t job waitressing, the other doing an apprenticeship 8-4 Mon to Fri and working at a petrol station four evenings a week. It's been the making of both of them and I am very proud of their achievements.
I know for a fact that neither would view coming back home to live as an option unless they are desperate and I would welcome them back, assuming it's temporary. In their opinion, living at home isn't a patch on living in digs and being free to do what they want, with whom, without having to check with us parents.
I know that if either of them had chosen to study locally and stay at home they would not be the same confident, independent individuals they are now. With the best will in the world, living in someone else's house, maybe paying a token rent, but without any real responsibilities (and consequences) does no favours for anyone. It does not give you the drive and ambition to improve your situation (makes you passive); it does not encourage you to plan for a better job, housing situation, further education; does not show you the vision of what could be (the sky's the limit).
Well, that's my experience anyway.