That sounds like a good tip for optimal disk space use, but probably a little bit more aggressive than I'd go on a Windows or even linux/unix install today.
My acid test is, if(or when) I forget what I had done, then 6months down the line moved a folder or formatted, relocated or changed a drive letter or folder rename. Could the optimisations result in a system that wouldn't boot, or might stop me logging in, without an installation disk.
For this reason alone, I don't fully relocate the whole profile(C:\Users\profile). But just the main sub-folders: contacts, favourites, documents, videos, music, searches, links, saved games to D:\. I did used to do it the other way, but it rarely end well, symbolically linking external storage for system folders