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But let's pretend there is.... well they have physical discs to rent. Valve doesn't sell physical discs. If you want to swap physical discs around, sounds like you should buy physical discs and games that don't require a launcher.
Valve is a store, not a rental shop, and they don't need facilitate renting or features that would enable renting because they'd be convenient for you.
Family sharing is a compromise to give you some functionality, but not free reign to run amok. And at the end of the day it's not there to save you money or give you a way to avoid buying games. The kind of flexibility you want requires multiple licenses. That's not going to change.
Umm, how about ever single game sold on Steam, Origin, Uplay and other sites. You pay for a license to play the game, each and every time.
Actually, that's not the reason. There are plenty of ways to accomplish that without ditching the "sharing" from the "family sharing".
The real reason is much simpler: publishers don't like people sharing their games, and Steam is dead without publishers putting the games there. Family sharing is pretty much the same as account sharing (you can't play on two computers using the same account), so it's not that much of a change to cause a major problem with publishers.
Every one of them and has been for decades, even the ones on cartridge, cd and dvd. The mere difference being that with digital it can actually be enforced.
It's a particularly perverse implementation when paying more to buy another copy actually reduces your options. Valve could easily fix that one.