“Market Dynamics” is discussed as if it is a physics problem.
Markets are social creations - they are a human way to effectively allocate resources.
They are also constantly being manipulated and shaped to better achieve certain outcomes over others.
When these outcomes are bent to serve the benefits of the few, or to serve the benefits of a principle that isn’t human wellness, its is a pointless market.
The rules against oligopolies, monopolies, fraud and manipulation are to ensure the social purpose of the market is achieved.
By extension - a market that by nature forces RTO, when WFH is superior to the majority of humans, is a market that needs to be fixed.
A negligible % of firms include commute time as a part of your salary. WFH means that you can save nearly an hour every day, doing any number of things that add economic value to humanity.
Your statement seems to be one of 'should' due to social factors largely outside of the various actors control and/or self-interest.
Which in my experience tends to mean 'I wish was', not 'will be', let alone 'is'. Unfortunately. But pressure applied to various regulators, PR campaigns, etc. could change that! I wish whoever wants to spend the time and effort doing so the best of luck. When that happens, the factors will change.
In the end, labor markets only care about the wellbeing of participants as much as they have to - because labor will either actually not participate, or regulators will actually intervene, etc.
If someone is willing (and able) to commute 12 hrs a day to fill a job, and an employer is willing to employ that person at the rate they want, that will often happen barring better deals. Stochastically of course.
One can think of it in relation to energy states (when markets get above a certain size) if one was in the mood.
As always though, just as in said physics or chemistry problems, individual 'atoms' can and will end up in wildly different states from the median.
But that a single atom may be a movement/vibration rate equivalent to 100C doesn't mean the temperature of the solution isn't 25C (for example). Or that it won't average out over time for that atom as it collides/interacts with others.
Just a data point: When I was living in LA, it would have been nearly 2 hours a day for a good while. My boss, at the time, commuted nearly four hours a day on the worst days.
How you decide to position yourself (and plan), and how they decide to position themselves (and plan) is of course up to each participant.