Libraries" icon is always visible in Windows Explorer:
This might drive you mad and duplicate files in applications such as Picasa where you think you have two copies of everything.
You may end up deleting files which just appear again or delete the originals and the library link ending up with nothing.
Anyway I do not like it.
After following this tutorial, "Libraries" feature will be disabled in Windows 7 and its icon will also be removed from Explorer and Start menu.
A word of warning though
If you have a Homegroup on a Windows 7 Network disabling this feature will cause some problems of connecting your PC's and the error messages will not tell you this is due to disabling the libraries.
You just need to run a small Registry script to disable it. Download following ZIP file, extract it and run the "Disable Libraries in Windows 7.REG" file:
Copy this URL into Internet Explorer
After running the .REG file, log off or restart your system and you'll no longer see Libraries icon in Windows Explorer:
If you don't want to disable complete "Libraries" feature but only want to remove its icon from Explorer, then run "Only Remove Libraries Icon from Windows 7 Explorer.reg" file.
PS: There is also a restore script available in case you want to restore Libraries.