I'm not sure why you think DMV runs better now. They were decimated by the ITS consolidation. They run on glue and string with a skeleton crew. They had key online services (road test scheduling) down for weeks with no ETA due to 'lowest bid' vendors.... no one could schedule a road test for weeks!
If you take the state workers out of Albany, you lose a massive chunk of the business dollars that come in, tons of breakfast, lunch, coffee, early dinner, take out, hair cuts, bars, dry cleaner dollars...
No one is rushing to move into the Plaza. I doubt they will rent in small pieces, it would probably be too pricey for small biz, no big corporations are rushing for a presence in Albany and the environment isnt biz friendly. NYS spent years trying to sell a hunk of harriman campus for years with no luck.
Last, WFH means work from home. You save some commute time and get some extra time with kids and family from that but its incorrect to portray it as being able to care for kids all day, you are on the clock.
I'm very pro-WFH but I dont think it will do anything you think it will except lighten the commute. Even the congestion in city is (imo) due more to private workers (Alb med, St petes... ) than state.