The hips.tar.gz file is set up that you would do the following:
sudo tar zxvf hips.tar.gz
This would end up with the NorderX directories in the /usr/share/kstars/HIPS folder, which is a more standard location for the kstars systemwide (in that they're available read-only for all users on a system, rather than having them in your home folder.
Then you would just point kstars to look at the /usr/share/kstars/HIPS in the dialog that you screenshotted.
You don't have to change what you've done, I'm just explaining why they have the /usr/share/kstars path prefix in the tar file.