Hi, what is the difference between the user's home folder created by the OS and a folder manually created by a user (be it on an external drive or another folder in the internal drive)?
I read that some of those who have a 256GB SSD on their Mac went through some complicated steps such as creating some links to move the user's home folder from the small internal SSD to an external drive. What so special about that home folder compared with one manually created by a user? Just drag and drop won't work? Can't we just leave that home folder in the internal drive alone and manually create a folder called home2 on an external drive and then store user created files there?
I am interpreting your post as 3 issues:
1) Home folder created manually versus by macOS
2) Layout/prepopulation of home folder
3) Home folder stored externally versus internally
As to 1) at the system level, a folder/directory created by macOS for a new user account is the same as one created by the user using UNIX or Finder. The nice thing about UNIX is that there are no special/magic/weird files or folders, and generally MacOS X followed that (resource forks in HFS+ and a few other things aside). The main issue is getting all the attributes (owners, permissions, ACL, etc) right. That can all be done through standard means but you have to know what the target is and why (essentially how the system works at the UNIX, etc level).
2) On login to a new user account (or one missing key files), MacOS X will create what it needs and/or update older configuration files on that user's login. For example, if there is no Library folder it will create one. If you don't have a Dock preferences files, it will create one.
3) There are long discussions on this but I can say I've been using this configuration for years and it works fine. As long as the external drive is
always connected. If a user's home folder is on an external drive that becomes disconnected while they are logged in, it will be a mess. Generally requires closing all applications (hopefully files saved somewhere...), logout, fix connection/drive, login back in. If the user logs in while the external drive is disconnected, the system will try to automatically create a new home folder for the user as per 2) above. It will of course be empty and this can be confusing. As such I never use external drives for home folders on laptops (but I do put home folders on non-system partitions on those laptops).
On the other hand, one can have a base home folder internal and then move selected folders external but I find this more confusing. First, not all applications have provisions for this. A lot of programs keep lots of stuff under ~/Library. You can move these manually but I find that confusing and the extent things are missing on login, might get recreated again as per 2). This to me has all of the risks of an external home folder with none of the benefits of a home folder cleanly stored on an external drive.
P.S.By default, MacOS X does not enable owners on external drives. This makes sense in the context of a thumb drive but is not good for a home folder. I recommend first enabling owners on external drives used for home folders.