working from home is great and all but I currently work in an environment where 'working from home' is the norm and it is not good for team-building at all. I've been here for months and still don't know what people look like or actually do even though I might send them reports or talk with them on lync.
Also, I guess this boils down to personality but I much rather work in the office where it is much harder to get distracted whereas at home you can just turn on the tv, watch movies, cook etc.
This is where regular company or team-wide meetups are worthwhile. GitHub do this semi-annually I think, I know Engine Yard do it with their remote support staff, and the company I work with does a monthly hack day.
Distractions can be overcome if you're willing to work on them. I find with daily standups, it's pretty hard to hide from a lack of progress, but if you don't have these then teaming up with a few colleagues to keep each other accountable is one option.
I stay away from TV, movies, etc during work hours, but I do tend to prepare proper meals in my lunch hour, rather than just grabbing whatever junk I can find. It's a good way to combat the extra weight you can gain when you start working from home too.
More challenging, in my decade of working at home experience, is turning off work to watch TV, movies, cook, etc. Work becomes the distraction itself. Perhaps it helps that I love what I do.
Also, I guess this boils down to personality but I much rather work in the office where it is much harder to get distracted whereas at home you can just turn on the tv, watch movies, cook etc.