"The biggest problem is the fuzzy line between work and home."
This is something you learn to manage. The fuzzy line is there whether or not you work from home. If you are a programmer or other IT type you probably already have the ability to do _some_ work from home and possibly have to be on-call sometimes (or all the time -- which I've done before).
There are ways you can manage this line while working from home, but having worked on-call, in both remote and non-remote settings, separating yourself is far more difficult when working from home.
Even when working on call, or doing some work from home, you can still maintain the mindset, "This is my home. I'm at home now. Work can't touch me here." I have tried to maintain that separation while working mostly from home -- by even physically removing myself from my office outside work hours -- but, over a long period of time, I can't help but feel my personal life is my work. I can never fully separate myself from where I normally work.
However, it's not fair to say that everyone will have the same experience, there are a lot of factors: work load, expected duties, office communication, and even your office layout -- I was worn down the most when I didn't have a dedicated office. Personally, I can't wait to get back to an office setting.
This is something you learn to manage. The fuzzy line is there whether or not you work from home. If you are a programmer or other IT type you probably already have the ability to do _some_ work from home and possibly have to be on-call sometimes (or all the time -- which I've done before).