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No, calibre is not e-book creation software.
It is, as you mention, e-book library management software and that includes modifying certain aspects of e-book file content as well as conversion. By itself, calibre will not allow you to create an e-book from beginning to end. It will allow you to tweak your e-book output a bit.
As for recommending e-book creation software... I'm not qualified to do so. There are several MobileRead forum members who are in the publishing business in some manner and, to the best of my knowledge, none of them is completely happy with any of the available software tools. From their comments, I have come to the conclusion that each tool seems to be adept at one or two workflow aspects, but otherwise has some fault(s).
A major impediment is simply getting used to workflow in that particular piece of software. Note that many software applications can produce e-book files - they just don't do it well (again, based on the member's comments).
Lastly, but critically, no software or hardware e-reader/viewer will interpret your resulting e-book file in the exact same manner. Each reader/viewer has some slight difference that will play havoc with your output. So the old K.I.S.S. adage is "best practices". Unless you're catering to a limited portion of the market (ie, Kindle only).
I hope my comments help.
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