It's about control. People like him want you where they can see you.
No thanks.
If they can get you to do things you don't like, like commuting, they can get you to do other things you don't like (like accepting unsafe work conditions, working unpaid extra time, etc.)
I can sympathise with people who don't have a dedicated workspace at home (if you can, make room for one, even in the cupboard under the stairs, it's worth it).
However the home office I share with my DH definitely beats the open plan office I shared with tons of noisy colleagues.
And the 1 minute commute to fire on the VPN definitely beats the hour I'd waste driving on dangerous roads in all weather. It's a no brainer.
As for putting a suit on, etc., I dress at home like I would for an office day, so fuck him and his gratuitous assumptions.
And as for talking with colleagues, it takes more effort (less spontaneous), but surely we all have phones (and/or Zoom, Slack, Skype, etc.) and can make sure we keep in touch (I do!), away from management's earshot as an added bonus (bet they hate that!)
The balance of power has changed in the workplace. That's a good thing, which employers will have to embrace, whether they like it or not.