Funnily enough, I did this on Saturday. I actually wanted to depersonalise the machine, I'd prefer a folder called home rather than my username next to a picture of a house. The folder I'm after is my home folder, the fact that the underlying OS named that with my username should be irrelevant.

I assumed I was changing a label (the name I changed wasn't represented as a folder, it was an icon on the sidebar next to a picture of a house).

I also fixed it by creating a new login as described and so far I've found no issues.

As for the comment about entering the password, that isn't really much of a warning, it's not like the system warned "You're changing the name of your home folder, this will remove all personalisation and settings". The password prompt was for changing the folder name, exactly the procedure I wanted to perform, am I sure? Of course I was, when not informed of the side-effects.

A minor annoyance, but I imagine it could trip someone up, so it will be good if tiger corrects this (e.g. by just useing an alias instead of the physical folder)

fwiw <- windows switcher here.