May be wordpress has limitation as it need to find post id from url and there is no place to put https://secure.domain.com/~user/blog along with http://blog.domain.com in wordpress settings so that it has enough knowledge to find post id.
I am using wordpress-https, seems to rewrite urls properly but wordpress does not seem to be able to interpret them.
Admin pages magically works. posts does not work. I can see the site theme in the its embrassing page.
I have premalinks enabled.
:'( Hope this most wanted and searched and discuessed feature will be part of wordpress.