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Yep you literally told on yourself here OP always read a ToS fully. it's entirely banable offense.
But yes what you described is true even in family share with 2 different accounts on 2 different comps. if owner of the library is playing a game the one that gets the shared library can not play the games from it at the same time. I know this is not what you are doing but just putting this out there ahead of time.
For 1 account 2 pc practically same thing who ever runs the 1st game is the winner. So the only way on steam to play 2 different games is to have 2 different accounts using 2 different libraries as a whole. Yea I know this costs just that much more money to have to re-buy a game for 2nd account but thats life and that's steam. There is other ways but the ToS and forum rules prevent me from speaking freely. You'll have to figure "other ways" out yourself.
Trust us, we have this conversation all the time with parents - two accounts will make life so much easier in the future. Remember, games are bound to an account, so you won’t be able, when his older, to move “his” games; you’ll have to re-buy all of them.
Edited to get rid of my ridiculous rant that went off topic and was bugging me.