Root's home directory only works if you're sshing in as root (not a great practice, although its certainly not as bad as on Windows thanks to key auth. You can simply revoke the keys of the admin you just let go rather than resetting a bunch of passwords). The reason its common practice in Windows Server administration is a combination of common practices: having dedicated admin accounts in AD for each administrator, Windows lacking a decent directory for content shared between users, and of course the general laziness that Windows administration attracts and fosters.

That makes sense if there is more than one user for a server (i.e. work environment). I would not care if it was on my home lab server, except that the root folder is deleted and remade on each boot.