basically i dont agree with the digital aspect to force digital. however i do see where your coming from.

Question, what if it isn't unlimited sharing or there are restrictions in who's able to play when. When does this program become "useful" for lack of a better word.

Maybe 10 would be excessive, I suggested before it should be limited to 'Family sharing' so if you have a list of say 4 users as part of your family (like the pay once per console Gold thing), then they can use the game but only 1 at a time. So it's pretty much the same as sharing a game with friends by giving them the disc, while they have it you don't so you can't play it but it if has multiplayer and you want to play together, you both have to buy it.

However, as the console is no longer always online check stuff, how would it know if someone is playing it on one console already if they aren't connected to Live?

For this I assume it would need to be connected. Which is fine. And I doubt this would be unlimited sharing. So I guess to refine my question would be what are reasonable restrictions. For me, being online if you aren't the one who owns it is fine. But I doubt that would be it. I'd think there would be a friend limit and time limit which I would think would make or break the service 

But will it still contain a time limitation? After it got initialy cancelled an MS employee spilled the beans and shared details. Part of it stated that with family sharing you're friends and family could play you're game library but it hade a timecap on it, an hour or so i believe. Making it a glorified demo mode really.

As Spencer said, they aren't just straight up implementing it for digital only because they feel that the people who already bought the physical copies without knowing digital copies would benefit from such features in the future would feel a bit cheated.

But honestly I'm sure they could figure out a way to give people the option to turn their physical copy into a digital one by having to do the 24 hour check if they want to do family sharing. This would move people over to digital altogether which would work out well for them. For those who don't want the family sharing and want to keep their physical copies without the online checks, they can do that as well. Everyone's happy and MS is swimming in cash.

Agreed.  This is a very simple fix that would encourage people to buy digital.

family sharing , ps had that for years,,ps3,psvita,ps4, i can share my game upto 2 sistems at the same time , so means that with a close friend we buy a game and i pay only $30 and can have the full game ,, and we can share ps+ to play online in 2 ps4s at the same time without use the same account ahahahha do u want more

Yeah, but that is kind of a seperate issue from Family Sharing. If the concept is as good as promised, paying those kinds of money isn´t that big of an issue. Also, the delas on XBL are comping in quite fast, so I still get deals that are comparable to the physical market, just not always on the games i prefer.

When/if it comes out its probably going to suck cause 3rd parties dont even want you sharing games physically. They dont even want you to watch videos of their games on youtube without getting a cut.