What problem does this address?

Currently, the home.html template is not an option in the 'Add New' menu in the Templates editor section.

What is your proposed solution?

We should add home.html as an option to create from the Editor, as this is still a commonly used template in many themes, and is often chosen over the use of front-page.html, which is included in the 'Add New' menu.

I'm not sure of the original reason the template wasn't included - I couldn't find any previous discussions.