I don't remember there being a method available that would allow you to delete a dataframe. If someone has come across a method that allows this please mention so that I can look into it.
According to my understanding of arcpy, there aren't any methods available for creating content, such as Map Documents, Data Frames, Layout Elements, etc. I've seen most users leverage the workflow noted by Darren Wiens. Typically they create a map with all of the content they'd require manually and use arcpy to manipulate content. For items like data frames and layout elements the approach is usually to move those items off the screen until they're needed.
If you want to easily accomplish this task you'd want to leverage ArcObjects via .NET or Java. The python approach is possible, but you won't find any supported channels from esri that would show you this approach. If I had to execute this task I would write up a console application or gp tool in ArcObjects. I could execute either of these items from python without too much trouble to create the needed content and them leverage arcpy to further manipulate the content.
Do you have anyone available within your organization that is familiar with ArcObjects?
