We can debate separately if companies should force people back to office.
But in this case it is an either or. If the advantage of the office comes from being around your team and colleagues then it very much is an either or between home working or everyone being in the office.
It's not wholly binary--maybe 2 scheduled days a week will work for both many of the people who would just as soon mostly work from home and those who want to be in an office with their team. But, in general, yes. A "you can come into an office if you want" policy is probably not going to be very satisfactory for someone who wants a co-located team and much of their team chooses not to come in most days or even live in the same area.
As I've said before, as this shakes out over the next year or two, I suspect a fair number of people who can do so will end up choosing jobs based on remote policies and how companies operate in practice.
That is really their problem. You can't force people to come to the office because you want it "hustling and bustling".