The tilde refers to your homespace. So, for whoever's logged on, a filepath like this ~/example.text refers to an example.text file in the root
of *their* homespace. The advantage of this, apart from far less
typing, is not having to do the /home/(user)/ prefix typing that you've
mentioned, and which some people will just not understand that they're
expected to replace (user) with their own username, when they see such
instructions on mailing lists.
You have made my exact point in you're first two lines. who - or where - is dracut's homespace. On a dracut boot, it doesn't appear that I am logged it as my home user.
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