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Family sharing is currently everything or nothing.
As i said originally....
NO. You either share ALL the games or NONE of your games. You can't restrict which games are shared and family view only effects the account it is set on.
I didn't mention anything about playing while someone's playing a different one!!
Say John shares their library with Jane. Jane has Family View turned on. Can Jane control which of John's games are allowed in Family View, or without entering a Family PIN can Jane access all of John's games, regardless of the Family View setting?
From my personal experience, I'd say Jane has to launch all games she wants to exclude from John's library once so that she can actually exclude them on Steam Family View.
And to clarify: the Family View only prevents incoming access; it doesn't prevent games from being shared. It only prevents access to them on the account that it's set on; and from the games it's set on.