Ahh. Someone who has readership finally noticed this. The problem with most tech geeks is they don’t seem to have families, or even longterm relationships. They don’t seem to notice that you can’t merge iPhoto Libraries or that iTunes is fundamentally designed for a single user environment (see also and this). The Tidbits group is older, and so they noticed …
TidBITS - Apple Updates iPods, Introduces Movies, Previews iTV... As far as we can tell, iTunes 7 in no way improves the situation of a family that wants to have a single music archive that's shared by multiple computers. Built-in sharing works poorly because only one computer can make playlists, rate songs, and so on, and maintaining a shared music folder on a centralized server works acceptably, but each computer must add new music manually. The one new feature here is that iTunes now supports multiple libraries like iPhoto does; hold down the Option key when launching iTunes to create or switch between libraries. The only real utility we can see to this feature, though, is having a relatively small library on a laptop for travelling, but having another library that points at a shared storage folder when you're at home. ...
The technical problem is bigger than it looks. iPods are also designed to hold contacts, photos, etc. Those are all user-specific. So you want sync to be user specific, but also support shared Libraries with personalized and shared playlists. A bit tricky … but there’s a shark in this pool.
You see, we only think we buy music for a family. The copyright holders would say we buy it for ourselves. If your son wants to hear “Yellow Submarine” he should buy his own copy. DRM rights, you see, are personal, not familial. Feel that noose?
So sharing iTunes Libraries is a bit trickier than it looks …