How do you use the Libraries vs the Genres feature?

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I use genres as it makes it obvious for my users (I generally pick the first genre listed from IMDB/TMDB) and they can stick to what they're interested in.

It doesn't "break" the genre tab, it just lets you slice that library at an intersection. For example, my Horror library includes the genres Action, Adventure, Animation, Comedy, Crime, Drama, Fantasy, Horror (duh), Mystery, Romance (...what?), Science Fiction, Thriller, and TV Movie under the Genres tab. All of these movies live in the Horror library, but also intersect with another genre and are thus filed appropriately.