You can remove permissions to the directory which would hide it. Out of the box, the User Homes directory has the group EVERYONE allowed access. Remove this and you'll find it hides it from view. The user can then navigate to their own area using My Home.
The only issue might come if they have been granted access to another User Home elsewhere. I'm not sure how they would then browse to it. Also, if they are using the CIFS interface, if they don't map directly to their home drive then they'll have no way to access it.