Does wp.com create a new set of tables for each new blog, or are all blog data stored in one set of tables (with a layout like: http://codex.wordpress.org/Database_Description)?
Would it ever be a good idea to create a set of tables for each blog in MySQL, or will MySQL be able to handle large numbers of blogs each with their comments/tags/categories/posts stored in one set of tables?
For how WordPress does it, have a look at WordPress MU
I imagine at a quick guess there’s a shared user table and each blog gets it’s own DB as the relations between objects only apply within a individual blog.
Edit: From the MU FAQ: