I'm marking this as 'Invalid' .  It really is "working as designed".
when you select Encrypted home, you're also selecting it to be private.
The assumption is that if you are concerned about the readability of
your data when the system is off, you would rather not have other users
read the data while it is on (or some similar thought process).

If you want public_html to work, then 'chmod o+x $HOME'.


** Changed in: apache2 (Ubuntu)
       Status: Incomplete => Invalid

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Apache2 userdir does not like encrypted home directories
https://bugs.launchpad.net/bugs/585212
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