> it seems like it would be ever so much simpler to go live near your actual office

This constrains the companies you can work at to ones with a local office, if you do not want to move house. If you want to live within walking distance of many companies, you could easily be looking at paying millions of dollars for a poor quality house.

There is a happy medium if you like offices (see below): co-working spaces.

> it's commuting to the office which sucks, and not working in the office

Most company offices are fucking horrific - open plan, atrocious coffee, noisy, full of people who won’t stay home when they are sick.