Completely agree with your reasoning, but I think the issue that should be addressed is not whether an employee should accept a cut or commute, but rather how unethical such cuts are, and what employees facing them should do in response.

I wrote up my thoughts on that here: https://opher-ganel.medium.com/3-reasons-pay-cuts-for-remote-workers-are-absolutely-unconscionable-699138d2a05d