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It seems to me the people from MS commenting on this are explaining it fine, we gamers are just making it confusing by muddling it up with doubts and hypotheticals. They have explained it simply.

10 people per share group.
Library owner can access his copy any time, share members can access a shared copy one at a time. Even the game the library owner is currently playing.
Multiple people can access one persons library at the same time.

This is what they have said. Seems simple enough, until people start questioning it and putting on their own spin. We'll just see how much of it is true and what kind of restrictions there actually are.