In POSIX shells '~name' expands to the home directory of user 'name'
$ echo ~bin
/bin
Now your tool need a way to query home directory for any user including system users. Depending on NSS configuration this is more complicated than just reading /etc/passwd.All for the rare case that someone passes a file path starting with tilde and wants it to be expanded. IMO, when you provide a file interactively you do so through a shell and tilde expansion is handled by the shell and otherwise just provide the actual file path and do not rely on the tool doing additional expansions.
PS: I mixed up TUI and CLI program a bit in my head. For an interactively used TUI program it might be beneficial to implement tilde expansion (but then it should be as complete as in Shells). A CLI program should not do magic stuff like tilde expansion.