What's the point? This is not the 1990s. Who exactly is this for?
Who actually has multi-user systems. Really has them.
Clients are either all single-user laptops (at home and at work), or single-user workstations. Very rarely they're multi user workstations, but then they use something non-local for their home directories anyway, so again who is this for?
This isn't the 1990s with 100 users on your computer club Linux server. Everyone just gets their own VM, now.
Honestly, who still runs a 1990s style shared shell server?
And per-user /home encryption on a shared system just sounds like a threat model contradiction. If you want to protect the users from each other then turning a blind eye to the regular local root exploits sounds odd at best. On servers for cifs /home if my home directory is secret, why would I expose it to every server I log in to?
And if not for human user accounts, how will this help anyone run their docker containers or any other type of service?
Am I just out of touch? Does this actually have users? Does it actually solve a problem?
It breaks many use cases, that's very obvious.