Works great until the startup is successful enough to hire an executive who things that office hours are a more importamt measure of productivity than peer respect or checkins.
I've seen it happen twice - once just after a series A, and once after a company made it incrementally to good profitability. Both had headcounts in the 20-30 range, and still considered themselves to be startups.
Yep, I saw similar trend pushed from top to a new development dept. in major bank during its first years growth. That said, I kept succesfully ignoring it and forcing my rule: I do my work well and I decide how and when - while reflecting the needs of team and project of course. It worked, mostly thanks to most local heads open mind. Yet, it's needed to push this contra-culture actively, things got much worse there for others since I left.
It's easier if you're a founder.