It was poor communication, and it was that poor communication that led to all the misunderstandings. Assuming that pastebin post is true, the sharing is a lot more restrictive than I would have liked, and it would have reduced it from an amazing feature to a mere afterthought in my eyes. Had it worked the way many of us thought it would, it really would have been exceptional.
You can't blame people for coming to their own conclusions though when there was so little hard conclusive proof coming from MS. People read between the lines, put together thoughts from different articles, and came up with their idea of how it will work. Sometimes it's right, sometimes it's wrong. If the pastebin article is true (not saying it is or isn't), then I am actually glad MS have been forced to change, as the Family sharing would not then be a feature I would use much.
The main thing I'm still annoyed about is still requiring the disk in the drive. It's a minor point but a valid one, as I was really looking forward to being able to play whatever I wanted without having to get up and find the bloody disk first!