How big are your databases? And how long will you be keeping the backups for?
DatabaseBackup - SYSTEM_DATABASES - FULL @ 23:30 every day
This is a must, because your master database can't have DIFF backups, and so this is the only way to have a daily backup of it.
DatabaseBackup - USER_DATABASES - FULL @ 23:00 every day
DatabaseBackup - USER_DATABASES - DIFF @ Every hour starting at 00:00 to 22:00
I usually do this once per week and once per day respectively. But this is where it gets complicated.
Most databases will handle this fine, but you might have some 10TB monsters that only have a few hundred MB of changes per day which will require special handling. Alternately you might have 1TB databases that completely cycle each day and where the DIFF backups are a waste of time.
My opinion is to standardise and then aggregate and graph out the msdb.dob.backupset data a week later to identify the worst of the worst, then set special steps just for those. Create a review process document and scripts to run once a month if you're neat and tidy. There are scripts to determine this but the best use of time is to suck it and see.
DatabaseBackup - USER_DATABASES - LOG @ Every 5 mins starting at 00:03 to 23:59:59
This is fine but generates 288 log files per database per day even if nothing is happening at all (75k uncompressed, 6k compressed). Those numbers quickly add up depending on the size and retention period of your environment.
But the worst part is restoring them. I don't know if you've ever restored 288 log file backups in a row (with a script of course) but even if there's nothing in them, they'll take more than just a few seconds to go through each. I don't know where the bottleneck is (the SAN, SMB protocol, network latency, the server, the SQL restore code, or what) but believe me it adds up and usually at the worst time when, "The application just corrupted everything and we need a complete restore right now!"
Even then. Even if you just have one server with 50 databases. If something happens to your server and you have to restore 14,400 log backups for that day on top of everything else... the scripting isn't a problem. The delays are!
Of course weigh this against, "You lost 15 minutes or data" vs "You lost 5 minutes of data", and your results may vary.
Whichever way you go one thing that will hit you is the stupid text logs that build up. Yes, I will call them stupid because it's a pain to find an error in CommandLog then have to scan through a million text files sitting in that directory just to work out what happened.
Enjoy though. We use Hallengren. But if we could redo it today we might switch to Minion. A lot of the same physical problems still apply but I believe administration and troubleshooting may be easier.