One thing to keep in mind about Windows Vista and Windows 7 Beta is that starting with Windows Vista the Known Folder system was introduced.
The Known Folder system is a set of folders that are Known to Windows, whether they are fixed system (Like C:\Windows), fixed per-user (Like C:\Users\[User]), movable (C:\Users\[User]\Documents), movable but not to a network location (Like C:\Users\[User]\AppData\Local) and virtual (Like the "Network Connections" folder in Control Panel).
In Windows XP and lower, there was a system similar to that but it wasn't great. The keys to each folder were in a bunch of different locations in the registry and only "My Documents" had an interface to change the location.
For Windows Vista and Windows 7 you can change any Known Folder that is movable (Or can be redirected as it's called) by using the properties of the folder.
Windows Vista could have a far better system then it currently does to let the user change the paths for Known Folders which is easier then what it has now.
The program Known Folders Browser 1.0.2 uses the Known Folders APIs to get a list of every known folder available and change the paths you change in one easy to use interface for all available folders including the Public folders like "Public Documents", "Recorded TV", etc.
For the Windows 7 Beta, the story is the same only the user folder is more hidden in favor of libraries.
If you go to Folder Options and turn on "Show All Folders" (Or similar) the User folder will return and be displayed in the list view.
You can also change the displayed Desktop Icons and add the user folder to the desktop.
I for one hope Microsoft plans to correct this oversight in the next beta release of Windows 7.