Comment 2 for bug 162031

Because Wine does mimic Windows, so it should mimic the behavior of Windows.

And it is better if Wine mimics the behavior of a new Windows (such as 2000, XP or Vista), instead of mimicking an old legacy version of Windows (such as 95).

Maybe there is no purely technical reason, since applications should use the %USERPROFILE% environment variable anyways. But having the directory in same place as in recent versions of Windows, makes it easier for users to find it.
The only pseudo-technical reason is that it would increase compatibility with programs by crappy developers who used hardcoded paths instead of environment variables.

I tried to find it, and didn't find it at first, then I found it under the Windows directory after a while. It was not where I expected it to be.

Wine identifies itself as Windows 2000 (last, I heard), so it should put the files where Windows 2000 does too, not 95, because Wine does not identify was Windows 95.
Microsoft didn't move the profile directory for no reason, they had a reason todo it. Windows 2000 is far superior to Windows 95 which is a crap system that never was any good.