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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