I strongly believe that the Family sharing option could still work today. Even with the reversal of DRM. 

See the thing is that ALL of this could work even without DRM and blocking used games all through the power of the cloud CHOICE. 

Let me explain. 

I buy a physical disc, i can use that disc just like i can on Xbox 360. No change there. 

I buy a digital download. The game can download to one Xbox console with your live account. The game becomes activated on your live account. You can play the game online or offline. You can log in and download it on another console as long as you deactivate it on the main console first. 

You can view all your digital download games on your console and choose to activate family sharing which allows up to 5 (10 is too many and publishers would complain like they did with Sony) people to access your game no matter where they are/which live account they use. This could be done and allow people to play the games.

Now publishers may not like the fact family sharing works on 5 devices at the same time. Publishers would prefer only one person plays at a time. So the best way to solve that is to make sure only 1 person can play at a time ofc. 

So the best thing to do without getting too restrictive is require the home console (one with the original game) to be connected to the internet for the family sharing feature to work. Similar to how you need internet to broadcast on ustream/twitch. When you lose your internet connection on your main console then the family sharing system drops after say an hour or something and no one can play the games. This is a good inbetween as it's not a forced check and is up to the user to enable or disable. The internet connection is just for the family sharing system and no other part of the system. ANd like i said, just digital games only. 

No mandatory check in to play all games, no always online. You decide when family sharing is enabled or disabled. Family sharing ONLY works on digital download games. This gives people an incentive to buy digital and helps MS move towards "the future". Digital download games can still be downloaded on any console ofc as that requires an internet connection to even download the game so that would verify if you've deactivated on the main console. 

Publishers would never allow a system like this though. 

But anyway. We don't know what Microsoft family sharing even was. There were rumours flying around that it was just one person who could play it out of the 10 and it was just a demo mode/single player mode rather than the full game/online.

Thoughts?

What you are saying is DRM basically. Requiring the system to be online to use the family shared content is actually worse than what MS was proposing.

The best solution would be what Android does.

Through my Google account I can set up to, I think, 10 devices that my account is on. That's 10 different pieces of hardware (not including PCs) that I can instantly access any of my content, settings and so on.

Even specific things like just music while the rest of that device is solely another user's information.

So, what I mean by that is MS could define a solution where you could define a 2nd or 4th Xbox One that will have access to just your digital game collection. They could do this with say 3 devices or 5 or whatever.

This would be an ideal solution and actually better than what they were proposing, especially after the pastebin article.

Of course this would only be for digital content. But that is what they need to do if they want to get to a point where everyone is only buying digital games. They need strong incentives like cheaper prices and this type of limited instant sharing.

apparently it's not being implemented anymore

Not really, it's a digital download copy so you need internet in the first place to even download it. So there is no reason why an internet connection is seen as a restrictive requirement. It's a choice for the consumer to enable family sharing or not and then verify who the family members are and when/what they can play. 

Angry Joe backs me up haha

http://www.youtube.com/watch?v=xcXdWRJ-xb4

I believe MS made the system all or nothing. Consumers always want everything for nothing. People have made their decision that the PS4 no DRM is what they want and that's what MS will give. No playing the middle, no trying to find out whats acceptable. Just drop everything and start from the beginning. Its just best for them to kill everything at this point then do a little here or there only to have this issue repeatedly tie down the console. Just make the system like the 360, PS3, PS4 and be done with it.

At a later time they can come back and look at adding the family plan once they determine if the market is ready for it or they get a lot of feed back on customer acceptance. I believe MS just want the whole thing dropped and to move on.

Oh then it would be like on the PS3 except worse. PS3 has it that anyone on the system can play a game if it has the account registrated for it. People lent out their accounts between friends so that a friend could download a game and play without paying. If they didn't sign in, they could play forever as the system couldn't tell if the account had been unregistered. Even when ignoring that last statement, it was a huge problem until sony limited to 2 consoles. 

Not always the case.

The whole game sharing thing was a 1 hour trial. Some games already have this. It was just gonna be any game that a "family" member has you can trial it.