You are right, it does read the home directory first.
I figured out the problem was that for loading newer versions of files
over old ones, the files must be in the correct directory structure i.e.
~/texmf/tex/latex.
I have just been putting files in ~/texmf/tex and ~/texmf/bib for
the past
wishlist/usability
** Changed in: texlive-base (Ubuntu)
Assignee: (unassigned) = Richard Johnson (nixternal)
Status: New = Invalid
--
packages in ~/texmf should have priority over base system
https://bugs.launchpad.net/bugs/332167
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