-Distribution decreases bandwidth and trust (although you can make up for a surprising amount of this with well timed visits).
-Semi-distributed teams are worse than fully remote or fully co-located teams on basically every metric. The politics are worse because geography becomes a fault line for factions, and information is lost because people incorrectly count on proximity to distribute information.
+1 to these two points. (Elizabeth & I both worked at Wave, which is distributed-first.)
Relatedly, Matt of Wordpress just published a nice piece on distributed work. (Wordpress is probably the biggest distributed-first company.)