In my first full-time computer job, I was a sysadmin on a 7 month contract at the University where I was a student. I took a semester off from school and worked full-time. They paid me well. I had an office to myself (with a door), a Sparc 5 and a Mac on my desk.
In my current job, I live in a grey and yellow cubicle and get paid even more. It's relatively quiet and dark. The engineers around me all like it that way. It's nicer than our older building and older cubicles. There are a ton of distractions. Phone calls, IM, people stopping by, noise in the hallways, etc.
But in my new job, I'll apparently be in a cubicle bullpen or sweatshop as I like to call them. There goes productivity. Apparently the folks at work haven't read and understood the standard literature. I work from home once in a while as it is just to get away from the distractions of the office. Being in closer proximity, with fewer walls, more noise, and brighter lights will certainly make it worse.
I would have thought that as I advance through my career these things would get better, not worse.