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A libby is good if you are faceing alot of psychers yourself. I never really use them and I don't miss them. But that really all depends on your meta and whom you play against.

As far as what powers to use really all depends on the roll you want him to full fill on the table. I have always liked the idea of a terminators squads with a libby attached with null zone attacking another squad of terminators. But thats just me.

Avenger is nice if you want a flamer template to deal with squads. Force dome is ok if the unit he is with doesn't have a invul allready. ie terminators. Again it really depends on the roll of the libby.

Good Luck!

Well hes going with the tac squad in the drop pod dropping hopefully right next to the enemy.
The avenger is awesome, wounding most infantry on a 3+ and only 2+ saves on a template.
Then when his squad get hit the 5+ invulnerable will help especially in combat against power weapons.

also Is it worth giving the librarian epistolatory?