Filevault 2 unlocks for all users - isn't that less secure than Filevault 1?

I've tried to find the answer online but can't...
If you have multiple users on your computer and you're using FileVault 2, ANY user that logs in decrypts the entire drive.
That means if I want to create an account for my flatmate, whenever he logs in the entire drive is decrypted.
In Filevault 1, each user had their own encrypted home directory.
Am I missing something?
What happens if I don't include a user when turning on Filevault? Won't that mean they can't log in at all?

Am I missing something?
Yes. You don't have to enable all users to unlock the volume. Only enable the users whom you trust implicitly with all data. The others will still be able to log in after the system starts up, but they won't be able to start or restart it.

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