That "incentive" already exists in the form of cheaper housing the further away you go.

I agree that commuting should be considered as part of "work", but I always took into account commute time when considering job opportunities. The pay obviously never had an explicit "commute" line, but my math was "this job + this commute for this pay". Figure if it's worth it or not.

I don't think people should be doing unpaid labor. What's the win-win?

Salaried employees are already paid for their labour, I'm not paid hour by hour.

If I work one extra hour, was that unpaid and my employer stealing from me? If I work one hour less, is that me stealing from my employer? No on both counts in my opinion.

When picking a job I consider a commute a cost already and would need to be compensated for it in the form of higher pay.

But I don't think we should artificially stack the deck in favour of people who live close to work, that just adds a totally fake and unneeded item to the long list of advantages e.g. non parents have over parents who need a bigger house or access to schools.

Agreed, which is why all salaried positions allow you to leave work at any time, as long as your work is done for the day.

Heh, "all". Fun fact: you don't know "all".

That was a joke. The percentage of salary positions that allow this rounds to 0.