I agree hybrid works best.
I work in an industry where people are generally able, motivated and conscientious (and very well paid). The issue for us isn't that we don't trust people to work when they are WFH, it's that they can end up working very capably and committedly on the wrong things.
What we do is complex and fast changing, and we often rethink our plans and targets as we learn more. We need to check in with each other a lot to make sure we all still understand what we are aiming for and that changes have been picked up by everyone. In person it's very easy to notice that someone's spiralling away from the rest. When everyone's remote and all you have is their presence or not as a thumbnail video on a call or a presence in the team chat, not so much. The amount of communication that a split second of eye contact can give from someone who is saying nothing in a meeting is amazing and that is literally impossible to get via Zoom.
I'm not saying fully remote teams can't have strategies to plug the gap, but they all require extra time and effort compared to what happens invisibly and all the time face to face.
Ironically, IME the team members who most feel they don't need to be in the office are the ones who most do, because they are the people most likely to make assumptions about the work without discussing with the team. The people who think it's important to communicate and cross check will tend to find ways to do that remotely as well, but they also tend to be the people who value hybrid time in the office exactly because it makes that two way flow of ideas easier.
Of course in a global organisation I've had plenty of times when I've been working with people I can't get together in person and we do make it work, but that is also why I know from my own experience that even teams who perform well without ever meeting face to face perform even better when they have.
One other, separate point...even if employers and employees decide full WFH is the best model for work, or employers are forced to accept it to retain talent, I have major concerns about what it does to society. A few people (not I think on this thread, but on others) see one of the benefits of WFH being that they don't have to spend time with people they work with but wouldn't choose as friends. I think it's really important that we do spend time with people who don't tick our boxes of people we respect, maybe even tick boxes of people we'd actively disrespect, because that's how we gain a more nuanced, less prejudiced view of the world. I've learned so much from the people I have worked with over the years in the gaps between the work and I worry that a society that already filters its entertainment, news and online world will become even more polarised if WFH allows it to filter workplace relationships as well.