Like anything in life, there are pros and cons.
One of the major pros is that you don't need to commute anywhere and you save that time. Of course, being home and being able to quickly address family matters or just be with your family is also important.
One of the major cons is the lack of direct people communication. You just IM them, text them or talk to them (sometimes even see them in a webcam).
I, myself, like to do a little bit of both. Sometimes working from home gives me the quiet I need to focus on some task or gives me the necessary flexibility in time to do things when I can and not necessarily on a fixed time base.