Why not ask in the installer while the password and user name is set if the 
directory should be readable or not? One line with a checkbox and an 
explanation would be enough. After installation the gnome user manager should 
ask the same question if a new user is added. Everyone who uses console tools 
will know what to do I guess so there is no priority for it.
I guess the only point of discussion is the default configuration. For me there 
is no problem if it is enabled per default when there is a configuration line 
in the installer/user configuration.

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