To gift a digital game requires an internet connection.  So DRM should already be in place for digital games.  I don't see any reason why they got rid of it.

While I agree taking it away from digital purchases seemed a little odd, I think it has to do with the sharing part. How much 'sharing' could you do? Inconsistant reports didn't help but many presumed that you could let someone else play the entire game you've purchased. This for digital games only is something that would be more hurtful that piracy (as I presume currently you can't really pirate games downloaded from XBL or PSN etc). I could buy a game and say to my mates "don't bother buying it, I own it already, just play mine.", this is especially potent for single player indie games.

They could check for license before you download the game. Like, if the game is already registered on one console, the system asks the user to first unregister it, which could be done via smartphone if the Xbox is in standby mode. The download on your friends console will not start until the license on your console is removed. Until you do not renew the license, your friend can play the game, even when offline. 

Just a quick idea, but I'm sure there are other ways than an online check every 24 hours.

Exactly. There was no reason to remove it from digital purchases.

EDIT: It is more likely that family share didn't exist in the form MS tried to make it seem, so to curtail negative reception hey removed it.
Now here they are promising it again like it exists, but still don't clarify what family sharing is. What's the phrase....dangling the carrot?

That's true, there were rumours of a 1 hour limit on shared games. I suppose now it benefits them to make it look like they had an ok plan they announced poorly, rather than a just a completely terrible plan.

haha actually theyre saying they announced it fine, but it was gamers not thinking clearly about it that was the problem. Now that we've had time to think about it, we are more receptive to it. That's what MS are saying here.

I don't think anyone would agree with that. A TV focused reveal followed by journalists having to pull out all that (sometimes contradictory) DRM information? They must have realised what a mess they made of it. Their best play is to blame the announcement not the plan, but blaming the gamers is a stupid move.

Hey they've done it before :D

It could possibly be done on a transaction basis, where you have to temporarily transfer and log it online. Perhaps set a time-limit where it auto transfers back, like PS+ games expire.

Which is why gaming is so great. In no other industry would we be so fortunate to be blamed for anything and everything that goes wrong. It really is like an abusive relationship.