I think the culture between .gov and private is very different and that breeds very different outcomes.
Sure, there are rockstars and slugs on both sides of the equation. However, private sector (again, non-union type jobs) is much more merit based. As a result, ROI is a greater focus. Innovation and performance are much higher across the board -- .gov is where innovation goes to die.
As a business, in order to make money -- that's the objective of all businesses -- I want to acquire and retain the best talent available for a given function.
Ex. I may a have team building widgets in NC. But, to build it, I need a designer and I know a great one is available in KS, but is unwilling to move to NC for reasons. I should still try to acquire that person. Now add, the NC widget is only one piece of a Mega-widget that's assembled in AZ. And the Mega-widget uses widgets from not only NC, but MI, OH, CA, and off-shore like India and elsewhere. In this scenario, which is not at all unique, every piece is part of a bigger puzzle. Ultimately, they all need to work together, does it matter where these teams are located when everything is decentralized? Not for high performing teams. This is especially true in service driven organizations like finance, insurance, banking, etc. That's the modern world.
Now, if we were still operating in a more centralized world, my view would be different and I'd agree the synergies to be gained with in person collaboration are significant. But, I'd also need to accept that I may not have the best talent and overall growth is probably limited.
The biggest evidence to support my position is multiple studies indicate productivity was stable or increased with remote work. As a result, the myths of cocktails by the pool doesn't quite hold up. Ex.
Surprising Working From Home Productivity Statistics (2024).
If a remote resource isn't performing, the issue is no different than one that's in the office.