Same problem here, although Home Sharing has always been buggy - it's just now much more so.
Upgraded iPhone 4 to iOS 7, and running iTunes 11.0 (on both my Mac mini running OS X 10.6.8 and my PC running Windows 7 Pro x64), and while they FINALLY fixed the "hang Music app on reconnect" bug, as well as the "disconnect after 30 minutes of playback" bug, they introduced a new one: hang on initial connection to library.
With iTunes 11.0, it would usually connect. However, every once in awhile the progress circle would get to the halfway mark and just hang. If I then canceled, or selected "iPhone", and then tried to reconnect to the remote library, I would get the message "Unable to turn on Home Sharing". Once that happened with one library - either Mac or PC - it would happen to the other one, as well, upon the first connection attempt.
iTunes 11.1 has made that occurence much more regular - it has indeed gotten worse.
I've signed in and out of my Home Sharing account on everything several times, restarted, blah-blah-blah, i.e. done all the things that I as an end user of an Apple product shouldn't even have to think about doing...and no, it is not a network problem because:
1) The Remote app - which doesn't use Home Sharing but does use Bonjour - can ALWAYS connect.
2) I can ALWAYS connect to my Airport Express for AirPlay streaming - again, no Home Sharing, but uses Bonjour
and most of all...
3) The Video app - which DOES use Home Sharing - can ALWAYS connect to my libraries, always on the first attempt.
TL;DR: Home Sharing is still broken, iOS 7 fixed a couple bugs but introduced a new one, and iTunes 11.1 has made it worse.