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I'm really just wanting to know if it is still recommended to separate working files from the boot volume? I'd like to keep the speed of the SSD for everything. If moving the home folder is still recommended, should I get a smaller SSD for the OS? And, then make the current SSD for work files?

It can still make sense, but only for parts of the home folder i.e. /Users/[username] (assuming you just have one), & only if your 2nd/only non boot-drive is a much larger/slower HDD, & only if you won't have room for good over-provisioning on your boot SSD if you don't. Those "parts" would typically be files/folders that are accessed much less regularly (compared to stuff in the hidden ~/Library folder), or are very large e.g: Documents/Downloads/Movies/Music(iTunes)/Pictures(iPhoto) etc.

As for BitRot, as long as you have a good backup routine with TM & CCC (or "maybe" SuperDuper)* there's no need to "avoid" it by creating a partition for /Users. That routine should be no more susceptible (certainly not in a meaningful RW way) in succumbing to BitRot, than a dedicated partition that's backed-up regularly for years.

*ideally to a very nifty NAS set-up!
 
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As for BitRot, as long as you have a good backup routine with TM & CCC (or "maybe" SuperDuper)* there's no need to "avoid" it by creating a partition for /Users. That routine should be no more susceptible (certainly not in a meaningful RW way) in succumbing to BitRot, than a dedicated partition that's backed-up regularly for years.

Bit rot in /Users isn't what I was referring to. Apple's upgrade procedure between two major versions of OS X can and will cause bit rot in the OS. It'll be in some insidiously hidden library, PLIST file, or something that didn't get caught properly during the upgrade. Through no fault of the end user, either.

It's happened every time I've tried to upgrade from a previous 10.X to the current 10.Y. Including Mavericks. I keep trying as an experiment, but I know full well that it's not going to work out for me, and that I'll eventually have to reformat the boot drive regardless.

It's for this reason that I say move /Users off to its own drive. It literally takes me no time at all after a full OS install to be back up and running with all of my data. All I have to do is boot the new OS in single user mode, delete /Users, and re-link it to my original drive. Blam. Done. No waiting for restoration software or anything like that.

This is how I've managed UNIX-based servers and workstations for well over 20 years, and it's how I'll continue to manage OS X. If you like your way, all the power to you.
 
Couldn't agree more, LT is key here, after more than two revs I generally to start from scratch.*
Usually though, at the very least one major rev. is fine, so long as you have a good routine...

*which also means not perpetuating an ancient users back-up, but rather "cherry-picking" what I absolutely need
 
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