I've read that WordPress does not support multiple blogs on 1 site, except by going for a multi-site option. I wonder why this restriction exists, and whether it could be overcome within a theme. Maybe a template file, with a 'category post'page, that could read and display the posts for a specific category?
I'm still quite new to WordPress, but love what I've seen so far, and interested at trying my hand at some development.
My guess is that if this were feasible, someone would have done it by now! But anyone out there know?