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As a general sort of thing, you want to use separate libraries when you have radically different types of things to organize -- I believe one person is using them to keep books and PDFs of music separate, for instance -- or if you have different sets of books for different people (say, you and your spouse) and need to have the proper set of books at hand for whoever is using the computer. However, books by authors with different initials are all the same type of thing. There's no reason they shouldn't be in the same library, and simply selected from the Authors list. Likewise, genres such as SF are better differentiated with tags. Not only does doing so not give calibre headaches, but if you decide to subdivide (for instance, I split "military SF" off from "SF" because I seemed to have so much of it) you can just select everything in the original tag and mark the ones you want to apply the new tag to.
Definitely, setting up separate libraries is not the way to go.
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