Most of my systems have a user for myself, and one or two other users like `sketchy` or `test` or something for programs that I trust enough to run, but don't trust enough to not fuck up my home directory in some way (including modifying startup scripts, which IMHO should probably require sudo to edit, even for a normal user).
If the program is really sketchy and you're worried about it doing something like exfiltrating ~/Documents/taxes, then private home directories would definitely seem like a good default. You can always have an explicitly shared area like /home/shared/$user that defaults to public.