Seperating /home makes sense from a couple of perspectives.
One, it allows you to backup the partition easier, especially if you make it another physical drive in the system.
Two it allows you to re-install the OS without re-installing over your user data. An OS install usually requires you to format over the entire partition before laying down data. Having a seperate /home means you can upgrade to SuSE 8.4 or 9.0 or whatever, when it comes out, and not lose your user data.
I switched from Mandrake 8.2 to SuSE 8.2 this way.