Based on what I've seen with some brief testing...

When you delete a user, said user's folder under "Members" is left untouched. Ownership of same reverts to "rea", presumably because he's the site superuser. If you want the user's folder to go away too, you have to delete that separately.

If you do not delete the user folder, and then re-create a new user with the same name, the system assigns the same folder name to the user, but does not change any of the ownership/permission. Thus, the newly re-created user will not have access to any of their files/folders.