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I've found myself with the same dilemma. I'd love if someone could propose a solution to the following (probably common) setup:

DEVICES:
- A Macbook Pro that I use for work tasks, but can do personal things on.
- An iMac at home that I use for personal tasks, but can do work tasks on
- A Mac Mini at home that is mostly a home theater PC, but obviously also functions as a mac.
- iPad
- iPhone 4

MY CONTEXTS:
- "Mac": for personal tasks that can be done on any mac
- "Home: iMac" and "Home: Mini" - I can't put these as a subcontext of "Mac" because if I'm not home, I can't do them.
- "Online": web surfing tasks that can be done on any device, as long as it's online
- "iPad": things that can only be done on the iPad
- "iPhone": things that can only be done on the iPhone
- "Omnifocus": do in the OF app on any device
- "Work": is for work-related tasks, usually done on the MBP

That's 7 top-level contexts. Unfortunately, I haven't found a good solution to reduce that number.