I've been personally most excited for this, simply because I've personally been looking at making my own image based system to daily drive and having an empty (and possibly read-only) /etc/ is kind of a prerequisite, which passwd and shadow kinda make difficult.
For anyone that doesn't know, homed allows using different mechanism as backing storage (e.g. directory, luks loopback, btrfs subvolume, separate drive and more). It stores user information usually store in passwd and shadow in a signed ~/.identity file allowing it to be entirely portable. Changes need to be done via homectl as it needs to be resigned by a system specific key (same for when a new home dir is added) and some changes are limited to admin only, while others can be done by the user themselves.
They have funded a variety of tooling, including curl, ffmpeg, gnome, php, etc: https://www.sovereigntechfund.de/tech