Yeah, they just contain the main Google Apps that are DPI changeable, so that they work with any device.
On my phone, I had (and sometimes still have) the same problem, and the ONLY way I could get it to work is following those exact steps. If I didn't wipe cache and dalvik, it wouldn't work!
Hmmm..... So it works FINE on the stock ROM, but as soon as you install a custom ROM, it starts to go funky... Try this Backup ROM Wipe Data Wipe System Wipe Cache Install ROM Reboot Does the button work now? If not, it may be a ROM fault. Install that kernel again. Does it work now? If it does, then try this. Backup ROM Wipe Data Wipe System Wipe Cache Wipe Dalvik Flash ROM Fix Permissions Wipe Cache and Dalvik Flash Google Apps Reboot see if button is working if not Reboot to Recovery Wipe Cache and Dalvik (it would have been built in the reboot) Flash Google Apps Fix Permissions This is another way I got mine to work, but it only worked twice... Unlike the other, that always works.
It won't work unless I have that kernel installed x.x I even tried flashing different ROMs and still have the problem.
Must be something to do with your phone. I guess you could take it in to the carrier store (restore it to stock) and say "My home button is selective when I press it, sometimes it will work, and sometimes it won't." They should give you a new one.
Looks like it. :/ This is the kernel I have to use. I wouldn't really mind using that kernel, but the battery life is meh