I realize this is subjective but I’m curious.
Here is how I’m using these now… (albeit a work in process)
Add Album to Library: If I like at least 1 track on the album or want to explore the album later.
Add Track to Library: If I dislike all other tracks on the album. Very rare.
Favorite an Album: If I have “favorited” most of the tracks on an album.
Favorite a Track: If I really like the track.
Favorite a Performer/Composer: If I like the majority of their music.
Banning an Album: If I never want Roon to include the album in Radio. For deliberate playing only.
Banning a Track: If I never want Roon to include the track in Radio. For deliberate playing only or a track I strongly dislike.
(Side note: The Banning feature needs to me redesigned IMO. Should be split out from Favorite button. Topic for another post I guess.)
When I have the same album from multiple sources (e.g. local files, Qobuz and Tidal) I keep them all in the Roon Library and use “Make Primary Version” on the album that sounds best to me. I do exclude lower-res versions of albums from each source if a higher-res version is available from the same source (assuming it is better sounding of course).
Maintaining the same favorites for the albums/tracks/performers/composers across these sources is the real pain. The payoff is that this gives you a better chance of keeping your streaming source libraries current when Roon interacts with it. Useful when you are away from Roon using a mobile device with Tidal/Qobuz. Not sure there is a good alternative to this.
(Side note: I wish Roon would create a help page that explains exactly what happens when library/favorite activities are triggered in Roon and in associated Tidal/Qobuz accounts. I have only seen partial explanations so far. Topic for yet another post I guess.)
I would love to hear how you guys are managing your music in Roon. Feedback and corrections on the above are welcome.