Well, Joel advocated private space for developers, but with an emphasis on 'paired coders' working together from time to time to mitigate the risk of 'lone wolf' programmers going off on a tangent, and to ensure code quality and consistency.
This was all before the dot com boom IIRC. At one stage, a few years ago there seemed to be a movement towards private developer offices, but it seems to have been overturned somewhat of late.