Whatever solution is decided upon, as long as home dirs via adduser etc. are 
NOT world readable then its ok.
We should also be educating users instead of getting them into bad habits such 
as sharing home directories - you won't see any decent administrator set this 
up on a LAN's LDAP or similar.

The basic concept is this: A user has a password, which suggests that a
user's resources are protected by this password. Currently this is not
the case due to the wrong mentality and current policy in Ubuntu.

I've pointed out to dozens of users that 'hey did you know anyone can
read your home folder?'. They are inheritantly shocked when they check
my accusation, and a lot reply with 'Gee, Windows is even more secure
than this'.

So whats next? IMHO, we should be looking at how other operating systems
current share files between local users - check OS X, MS Windows, other
distros/*nix etc. Personally I think one of the management options is
the DE to provide a tool to share a folder - and hey lets not forget
that in Gnome and KDE users can already click a folder and goto its
permission's and easily change who can read it. Ideally I think that
that every user should know the basics to UNIX/Posix FS permissions
also.

-- 
Home permissions too open
https://bugs.launchpad.net/bugs/48734
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