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It sounds like a nice feature, but still feels strange.

First of all, I find it rather hard to believe that what we are talking about here is exactly what Microsoft had in mind when they wrote that paragraph.
Why does that article so clearly distinguish between "friends" and "your family", when you can simply declare just anyone as being "your family"?
Why did no one figure this out before when it's so obvious?
Why didn't Microsoft point this out before when it would have been such an easy and obvious way to silence at least some of the criticism?

I just don't believe that Microsoft originally intended it this way.
I believe: Either they just decided to point people at a possible loophole in the license after the criticism just wouldn't stop, or there is at least one catch to this "your family" stuff that people don't quite realize yet (or both).

This whole Xbone DRM stuff is quite confusing!