I changed this to an improvement. Unless I misunderstood, this is not a bug: there is no Home entry in the left column, there is only the "Home" title at the top of the column, which is not supposed to be a valid drop location. The files can be moved to the home folder quite easily by using Actions > Move. Since the left column only contains the current folder and "Up" (which is not droppable) it seems like it is quite useless as a drop location.
Drag and drop does work well for adding documents in the current folder to subfolders. A possibly more useful option for drag and drop would be to make the bread crumb path at the top of the right column a drop location so that you can drop an item on any of the parent folders.
Although without a real folder tree, it seems to me that it will almost always be more useful to use Actions > Move unless moving items to direct subfolders.