I have setup a single node multi-user hadoop cluster. In my cluster, there is an admin user that is responsible for running the cluster (superuser). All other users are all
tapan, Each user has a "home" directory in HDFS located at /user/username. For example, If you type hadoop fs -ls, it will take you the current HDFS user directory. I checked it on single with two users.
Coming to unix like file (/etc/passwd) setting, i did not know. But, it is really interesting. As chris said, we can add new feature like, introduce user-admin-site.xml like configuration file and add groups, users their permissions on directories, home directory etc. Really intertesting, we have o try this...