Which distro has the best and most complete KDE Plasma integration?

It’s the norm, but not mandatory. If you look at /etc/passwd, you can see that the user’s homedir is explicitly given in the 6th field:

me:x:1000:1000:me:/home/me:/usr/bin/zsh

Tools that need to know the user’s home directory should get it directly from $HOME, rather than making the fallible guess that it’s /home/$USER .

If all your users are authenticating with AD or Samba4, and their home directories are in /home/server/username, and one day Firefox won’t run, it’s a problem.