I'm about to start my first blog and updated to WP 3.3 yesterday. As far as I understand it's now possible to run multiple sites from one WP installation, but my question is if this makes sense or if it's better to have a separate installation for each domain?

I don't want to set up the blogs as subdomains like blog1.domain1.com, blog2.domain1.com like it's been described in the WP tutorial, but rather have it like blogdomain1.com, blogdomain2.com, etc.

The tutorial on the WP site seems pretty good to understand so I will be able to work myself through the process, I just would like to ask for opinions in which way to organize multiple blogs without having the struggle with multiple WP installations, different admin areas and different passwords. I would prefer to manage all blogs from one WP admin area.