I think that small teams with high throughput communication can work in place and remote. In place the high communication is there by default where the default remote position would probably be lower communication / more isolation. It doesn't have to be this way of course, but it would require the remote high communication model to be put into action intentionally.
It's worth remembering that this high communication method isn't really scalable too, and that larger teams trying to follow it will find themselves dedicating a larger % of their time to noise. It would take some intentional actions to move away from it as the team grows.