I totally hear the arguments for work from home from eliminate commute standpoint.

But when I hear people talking about all the time they have at their work from home job to work out or hang out with the kids or drive carpools or whatever else, it reads as if they're cheating their employer by working part-time despite getting paid full time.

Of course every job is different. But most people I know who aren't self-employed have to work when they're at work. If they're taking time to do a lot of the things that you mentioned, they're either giving a half-hearted effort or not being honest with their time. I guess the litmus test is would you hire someone to do what you do and pay them what you're paying them for the amount of work they're doing? Or would you say "man, they can do that same job in a lot less time and that extra cost is coming out of my pocket"?