Saw this Fast Company article doing the rounds recently.
The article certainly calls for a solution that is another extreme and is bound to fail. A potential way of thinking about this could be to accept the difference in people, and the variety of work that even one does, which require different mindsets.
When I know exactly what I need to do, I really don't need to be in the midst of people, because I get easily distracted. I have tried everything - headphones, removing windows, turning off IM notifications etc. However, I cannot escape how my human mind is wired.
It is studied that any motion can detract the normal human mind, unless you are a zen master or a hindu sage in the deepest meditation roles. And I am not. This means that to get thing done, I usually need a corner that is slightly dark, away from any form of human contact and I have found these nooks in my current setup.
However, some of my "brightest" ideas have stemmed off a serendipitous conversation with a colleague as I am sneaking around the corridors trying to ensure my nook is safe.
I think all of this is a long winded way of saying - there should be a healthy balance of both options equally available for all your employees.