Systemd, the Linux equivalent to the Windows registry. Yuck. It's the primary reason I switched to Devuan.

The homed subsystem sounds overcomplicated, resource hungry (a loopback filesystem requires system memory), and a bit much for a home user. I'm sure there is a more straightforward way to do this already for workplace (enterprise) systems.

Plus, it sounds as though its security could be vulnerable.
"When the user successfully authenticates, systemd-homed unlocks the LUKS volume and compares the record stored within the LUKS header to that stored in the .com/identity folder. If the records and encryption keys match, the directory is mounted and accessible to the user."

So there's a point in the process at which the volume is actually decrypted before the .com/identity folder can be read for... authentication? Umm. This is also a similar scenario to the SSH problem. So it's an okay process for local login to have to read a subdirectory of the user's home, but not for SSH?