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Here is the official word from Microsoft TechNet, The C:\Users folder is shared when any sub folders from C:\Users\<username>\ is shared. The article is stale and mostly unhelpful, but worth knowing to complete the story.
When a C:\Users\<username>\<folder> subfolder is shared using the shell UI, the C:\Users folder and its contents are shared as well. Additionally, when sharing is revoked on C:\Users\<username>\<folder>, the C:\Users folder remains shared. This behavior occurs in both Windows Vista and Windows 7. When any folder or file within a userâs profile is shared, the Windows sharing engine creates a single share to facilitate sharing out that content.