I'm self employed and have an away from home office also.
Like OP it makes a break between work and home. Plus, a few times clients have dropped by to see something. Also, I get dressed and see neighbors from adjoining offices on a regular basis. So I don't become a totally socially inept nerd.
I don't have any kids but if I continue with this, I fully expect to get more than 43,000 worth of value out of the office over a 10 year period.
I think this is a problem that will be solved in time. The social contact one, I mean. One of the advantages of being self employed is that advancements in productivity are things you can actually take advantage of. It's not like in an office environment where no matter how long it takes you to accomplish your work, you still have to have your butt warming a chair for 40+ hours a week.
But even if you do maintain a schedule with 40+ hours of work a week, working from home still leaves you with more time, since the time eaten up by commuting disappears. Now, imagine that everyone in your neighborhood is doing this. Instead of the vast majority of your local community spending the vast majority of their time outside of the community, they will actually be present. And they will all desire the natural human need for social contact. I expect that this will result in a rebirth of the local community. Long commutes, ever-growing work weeks, ever-shrinking vacation time has pretty much decimated the whole concept of a local community. But when those things disappear, you're going to end up with a lot of people wanting to get together and I'm sure they will eventually figure it out and block parties, back-yard barbecues, etc will become a regular occurrence.
Transitions are always fraught with difficulties, and I think the social contact issue with working from home is just one of the temporary ones as our society moves toward people working from home, most being self-employed.
However if I work at home for the long term, then here's what that will cost:
10 years X 12 months X 360 per month = $43200
If you are as old as I am then 10 years won't seem like a long time and $43200 will seem like alot of money.
In your shoes I'd put a chair and a desk in the garage, presuming you have one or similar.