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Of course not how do you come up with it. Sounds like you want to make a business out of it
There is family sharing, but it comes with serious caveats both in terms of usage (a library can only be "in use" by one user at a time; this is not like sharing a game CD, more like sharing the entire CD box) and in terms of safety (the other guy gets a VAC ban -> you get the same).
Kind of yes, but that's not how you usually do it. Just install whatever you want to play on that other system as well.
Steam does not handle removable storage very well.
Best way to use Steam with an extenal/removable storage is to install Steam on it. No accidentally forgetting to connect the drive and if the drive has a micro disconnect both Steam and the library do, so it shouldn't be an issue.
While it should be considerably safer since you can't start Steam without the drive being plugged in, it won't help against the drive disconnecting while Steam is still running.
Admittedly, I don't know how Windows will react when executable files disappear. Maybe it will just kill the associated processes when it happens... or the kill will only happen when it turns into an actual problem, like the process wanting to execute a piece of code that's not in memory...
If the drive micro disconnects both Steam and the Library would so no chance of Steam losing access to the Library which can cause people issues.
I ran Stresstests and benchmarks for my 3dMark + a bunch of games including a complete Borderlands 2 playthrough all from a USB drive after I built my Nephews PC. Wanted to do my best to identify any issues before I gave it my sister for his xmas present last year. BL2 was 60+ played over a month ann Steam had no issues while running of the USB drive for the whole time.