There used to be time when I believed it does not matter where you are, once you are engaged into project, you can work at Grand Central, if you have to. It is true with a lot of developers, majority of which are also workaholics. The thing is, majority of us are also introverts - and productivity will go through the roof if the environment is set up to accommodate this fact. Promote quieter, more individualized space is less of a face-to-face and more of a face-to-screen setup (not to be confused with desire to be stuffed into a tiny faceless cubicle). Some may scuff this thought as promotion of anti-social behaviors however the question was if environment matters to development. It does, even when we think it does not.