I said what I did because a previous employer of mine actually did an across the board revocation of maxi flex because there was just one guy in our division who was caught abusing it; ironically enough he was never fired. My PHB decided it wasn't worth the effort to do the documentation that HR required to have somebody canned. Our hr department to that company made Catbert look like a saint.
Pete: Many of the companies that are truly responsive to employee needs would never end up with a Wally - at least, not for any length of time. Any employer that feels the need to have managers looking over its employees shoulders will quickly end up with a full complement of staff who will slack off if not micromanaged...and the converse is also true.
If your HR policies are decent and progressive, and you pay people what they're worth, then you attract good talent. If that 'good talent' works from home half the time, or works flex hours when the manager isn't in, it doesn't matter - they'll be just as productive if not moreso.
Furthermore, if your staffing philosophy is any good at all, every employee has a job that needs to be done. When that job isn't getting done, it gets identified pretty quickly.
Put another way: Most people will respond to the amount of responsibility and trust they're given. "The only way to make a man trustworthy is to trust him; and the surest way to make him untrustworthy is to distrust him and show your distrust." And for those few who are trusted and yet become untrustworthy...well, you fire those guys.