At large companies, co-location seems to drift over time. My company has long been pretty remote-friendly and I expect most teams are pretty distributed at this point.
ADDED: You can force co-location but, as you say, it reduces company options as well as employee options. And may not even be very practical; I work extensively with other teams both in another state and in Europe.
ADDED: You can force co-location but, as you say, it reduces company options as well as employee options. And may not even be very practical; I work extensively with other teams both in another state and in Europe.