It could be considered a raise in terms of the amount of time you dedicate to work and the amount you get paid for it.

8 hour shift plus 1 hour commute both ways means you effectively dedicate 10 hours to your job. Replace the commute with a 30 second walk from your bed to your desk and you are now making more money for your time.

Mind you, I still agree that remote work should never be actively viewed as a raise or a perk. It should be the default for jobs that are compatible, which is a ton of them.