Yes, I do have multiple libraries and it works quite well. However, I believe you are still a bit confused about how iTunes works. Think about it for a second and let me know if my logic is incorrect......
The reason he can't use his old library is that it is pointing to a crashed drive that is no longer accessible.
The old library expects to find the files on the crashed disc and when it can't it displays a !
The library file on his backup disc is not a different library that points to a different disc; it is a backup copy of the one he can't use i.e. it is exactly the same.
The backup library expects to find the files on the same crashed disc as the original.
If the original won't work there is no way an exact copy of it will work.
For it to work as you described iTunes would have to somehow change all of its pointers as it was being copied to the backup disc. That doesn't happen.
I agree that an update would be nice.
Take care
The reason he can't use his old library is that it is pointing to a crashed drive that is no longer accessible.
The old library expects to find the files on the crashed disc and when it can't it displays a !
The library file on his backup disc is not a different library that points to a different disc; it is a backup copy of the one he can't use i.e. it is exactly the same.
The backup library expects to find the files on the same crashed disc as the original.
If the original won't work there is no way an exact copy of it will work.
For it to work as you described iTunes would have to somehow change all of its pointers as it was being copied to the backup disc. That doesn't happen.
I agree that an update would be nice.
Take care