Now yes, our uni probably shouldn't be giving out userdirs to all students, much like wifi, you should only let in the people you trust. But that's exactly the point of the article.
This is like complaining that Geocities users shared a security domain. Surprise, there was nothing of value hosted there to start with.
It really has nothing to do with homepaths, or even user-supplied data whatsoever.
After all, if we didn't need to care about user level security, why don't we let everyone be root? Surely we only created accounts for people we can trust, right?
I'm not saying that your point isn't valid that the exposure here isn't very small. I'm just saying that your logic isn't really very sound.
Edit: The "true" marquee was running in the now defunced status bar (window.status) via JS.