It makes perfect sense to you, and me, but unfortunately, in America at least, the upper hand is very much with employers. I could be semi-OK with non-reimbursement for salaried workers if daily travel was factored in, but for those on hourly wages it’s immoral to have commuting expenses (time __and__ money) eat significantly into wages.
We actually deal with this nonsense in our household; my wife is hourly and between the commute, parking, and walking to/from her workplace she loses about 20-25% compared to the time she actually gets paid for. We also spend a lot on gas, and have been putting ridiculous miles on her daily driver. Not to mention physical fatigue and emotional stress; she talks about quitting at least once a week. All for a mediocre wage (I would have said it’s garbage if she was our sole earner - my compensation is about double hers and I WFH).
Edit: also, I remember company cars being a thing not too long ago. I don’t hear about them as much as I used to.