I did finally find a way to get rid of the Desktop icons for Homegroup and libraries. the following hack is kinda brutal, a little more research is needed to refine it, but here it is, raw and risky:
using trusty old regedit, navigate to:
HKLM/Software/Microsoft/Windows/CurrentVersion/Explorer/Desktop/Namespace
Back up this tree for safekeeping. All of the entries that used to be human readable in earlier versions have been turned into gibberish. None the less, I simply deleted everything I could from under this tree (two entires refused to die). F5 refreshed the desktop. Homegroup and Libraries are gone.
This is a dumb way to do things but it works. Later I would like to figure out which key was the magic that got rid of Homegroup. I actually use the new Libraries feature quite extensively, and would like that back. But I just created a short cut, anyways. Some other hack I've forgotten takes away the indicator arrow for shortcuts, and it looks factory anyways.
No luck on figuring any more fine grained control of the sidebar yet. The desktop was easy, it's really just an old XP/vista hack. sidebar is all new, so harder to track down.
NOTE: better information on how to handle this is in my later post within this thread, use those directions, not these!