Understanding the Difference Between Home and This PC: A Guide to Choosing the Right Option

With the most recent Win11 updates, what exactly is the purpose behind the fresh Home hub in File Explorer? How can it enhance my user experience compared to the traditional This PC view? For adding custom locations, I rely on Winaero Tweaker to tailor This PC to my needs.

Additionally, why is every item grouped under "Desktop" in the left-hand pane?

This is where I currently stand...