I believe that the at-home-closings were largely a result of title agencies attempting to expand out of their normal service area.  I have seen a lot of title companies offering services in areas where they don't have an office.  Their solution is to hire a mobile-notary to go the borrower's home and close the deal.

I have done a few at-home-closings, but usually for elderly or disabled clients that would have difficulty coming into my office.  I think it is very reasonable courtesy to extend in those situtations.  However, I would not mormally close in someone's home.