TigerJimmy-
Yes, alphabetical by composer has problems with multiple composers, but there is usually a primary composer and one or more secondary pieces. This hasn't been a huge issue for me because I have far more popular CDs (1200+) than classical (~200).
I would have problems with your system in that it requires the computer database access. Not to mention the extra effort in creating and applying labels. Maybe I'm just lazy...
That sounds like a sweet cabinet, though... I'd like to see the pics after you have it all set up.