As FAT32 is a common peecee filesystem, it may be OK for carrying mp3s
around on usb drives, but it can't handle unix filesysystem objects,
ownership and permissions, pipes, symlinks, quotas or other needful
things. Even distros that can run on a peecee filesystem don't run
directly on it; it's impossible without a virtual unix filesystem to
provide the hooks for unix to operate.

What does this mean? If you have different users under /home, they will
all have the same perms and owner - goodbye privacy and security. If you
have symlinks, they won't work. dotfiles? I don't think they can exist
on FAT32. A lot of things will break.

In short, it won't work. If I needed something like a FAT32 area on
linux, I'd keep /home on a native unix filesystem, and mount the FAT32
partition somewhere else. - maybe /home/FAT, or /usr/local/PEECEE