Then this is a problem with your team. On the other hand, my team has been more productive. I enter work with more energy that would be wasted during a commute. I often work later knowing I don't need to account for an evening commute. We can multi-task during portions of meetings which don't require our attention.
You sound like a micromanager. If you have notable metrics that show decreased output, then raise the issue and correct it. But don't say that everyone should be subject to losing privileges due to your team's poor performance.
as long as their tasks are done, who cares? i take a 30min nap after lunch almost every day but i could also do a FFXIV dungeon instead.