I've noticed an inconsistency with the way template hierarchy works (IMHO).
My theme has a home.php, which displays correctly on the sites homepage. But, when clicking through to "More posts" (www.example.com/page/2) the template that is called is home.php, not index.php as expected.
My reading settings are: Settings>Reading>Your latest posts
My understanding is that home.php is only shown as the site's homepage, meaning, the first page displayed. I don't think /page/2/ should use home.php. Is this a bug, or is there a reason why it's made like this?