I'm not really sure that you can have every "page" be a different blog. Pages are really set up for static info that lives outside of the regular blog. That said, there are two possible solutions for you.
1) WordPress-Multiuser - designed for blog networks - this is what runs wordpress.com
2) page-authors-2.0.php - This is the solution that I am currently implementing. It works nicely. It creates a page that lists each of the authors with a link to their author page, including their posts. Ignore the formatting (still working on it), but you can get an idea of how this page works at my site - http://www.sermonexchange.net/browse-by-preacher/