While I agree that there is a problem which needs to be addressed, this one size fits all approach is about to hand me the short end of the stick.
I work for a small music tech company in California. I've been talking with them for the last year and a half about working remotely so I can move out of state. Because of Workman's Comp issues associated with home offices (there is actually a case where a woman got compensation because she tripped over her dog while working from home), most companies up until now have made remote workers independent contractors just to limit their liability. My company was more than willing to make up for the benefit losses I would see in changing my status and I was quite happy with the proposed arrangement.
Now that's all been thrown up in the air because (with a few limited exceptions) everyone must be an employee regardless of the situation.