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People will just rent out the additional slots.
It's greedy and stupid to limit a function that is meant for blood-related families living under the same roof, to limit the size based on the median size of such families? Oooohkay.
What if I have a big family with many different personalities?
Then they can get a job and buy their own games.
What do personalities have to do with it? If your family consists of two adults and ten kids, then tough. You're past the supported number of family members. And unless you bought 12 gaming PCs, it's not like you'd all be gaming at the same time anyway. The solution to that situation would be the adults having their private Steam accounts and family sharing to the maximum remaining four allowable family accounts, for the children to share.
If your family members live on the other side of the globe (like my brother and sister, do), then tough. Family sharing isn't meant for you, and if you don't have your own children (or other relatives) living under your roof, then, again, you don't need the feature.
You might pay $1, you probably won't pay $100. What is the value of a slot fo you wager?
But yeah don't think Steam will do it, but if they did how much you think they should charge?
What if the limit was 2? Or 3?
The limit has to be somewhere and the average family size is 3.15 people, so they about doubled it.