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do you also do chmod -R 777 /?

That seems excessive. Why not just run as root?

Pretty sure that actually breaks stuff

This is correct.

But you don't. Almost all 'applications' run unconfined.

I can think of a great reason not to disable it, exposing $HOME to the world.

Have had SELinux for almost 10 consecutive years. $HOME has never been exposed. I've no idea what you're going on about.

Of course not, you have it enabled. Read OP properly?

Whoops, typo, I meant to say I've had it disabled all that time.