Well, right now, I’m using it on a site for a client, and he has one page with hundreds of articles split into individual categories Each post is only part of *one* category, so it shows the title with the category description belonging to that category under it. I would *guess* that if a post belonged to multiple categories, then the post would just show up, repeated, under the next category? I don’t know. Right now it’s working perfectly fine, though. I think what you’ve got there would work perfectly well. (in my case, though, I’m using the shortcode multiple times, because the client has something separating each category, so I’ve got a shortcode in place for each one so I can pop that thing in between them)
I *do* think it would be nice to be able to add a class for the category name. I just tried using the catlist_class, and it didn’t apply the class anywhere – I don’t know if that’s a bug or what (but I worked around it) but anyway… hope that helps somehow!