Comment # 6 on bug 1182850 from Thorsten Kukuk

(In reply to Johannes Segitz from comment #5)
> The expectation is that without any changes by the user the home directories
> should be created with mode 700. So if YaST already takes this from the
> configuration file then we probably only need to change it (which then
> wouldn't be your task).

Upstream did NOT change the default! Please look at the from you quoted jiras.
Upstream did add an option which allows to change the mode of the home
directory, nothing more, nothing less. It's by default disabled.