IMHO There's a bit of an evo-psych thing going on there, and a lack of awareness of what that means... mixed with the both sides being skeptical about management picking one side or the other.

So you end up with this sort of semi faustian thing where thoughts of "maybe certain sub groups of product/design/sales/eng really should just be together/remote" are ejected like hot shit in fear that if that thought is allowed to consume management, which ever option that is picked will dominate everyone.