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It's to prevent leasing aka, selling sharing rights to a game to play it, pretty much.
Some countries can get games dirt cheap, then they sell the rights to share it to someone else. Seems cheap to the person buying the access, but it's a lot of money for the person sharing.
Your comment about region pricing is valid, I agree. Random brazil guy doesn't fit here, OK. But my local friend still remains. And there is no difference between him and my brother as a customer.
I've seen people that have paid more attention than me claim that it may also still be good to have the to be shared to account log in on your system once, as was the thing in the old system, but I don't know if that's true.
Nice catch. This could be an issue. My friend rarely buys games.
As to when it is true for now only Steam knows for certain...
Too many abused the regional account sharing and with the new version since multiple people can use the same account of games they have to set up more restriction or no game company would use it since it means a lot less sales of their game.
Nope. You're only required for all accounts to have the same store region.
I can see them not allowing the family share to work at all unless everyone is on the same network / ip with each other and then more people will complain when they are the reasons that cause problems.
It's meant for families that live in the same household. E.g., parents and their children. When the children grow up and potentially move overseas, they are no longer a part of that household. That's typical of most systems that offer similar family sharing, some even go so far as to only allow sharing while you're all physically in the same house. Now, my sister lives in a different country to me. As did my parents while they were alive. None of use thought being in different countries "broke" apart our family because we couldn't use a Steam feature.