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I've also found my Kobos and their Overdrive integration to be best with library books, but using multiple library cards does add a few extra steps to the process: you'll be able to sign into one card on the device itself to checkout books and have them automatically sent to your ereader, but for books checked out on other cards you'll need to use Adobe Digital Editions (or the deASCM plugin for Calibre) to transfer the epubs to your ereader - they won't be sent automatically, even if you're signed into multiple cards on Libby.
There is apparently a way to sign into multiple cards on the Kobo, but I've never been able to get it to work myself.
Also, you will be using Kobo's reading program to read your library books as opposed to Libby's, though you'll be able to do all of the same things (and more, in terms of adjusting font/page settings). If you want to run the Libby app directly on your ereader, you may want to look into Android-based ereaders.
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