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http://store.steampowered.com/subscriber_agreement/
" You may not reveal, share or otherwise allow others to use your password or Account except as otherwise specifically authorized by Valve. Any use of your Account with your login and/or password is deemed made by you and you are responsible for it and for the security of your computer system. Valve is not responsible for the use of your password and Account or for all of the communication and activity on Steam that results from use of your login name and password. You may not sell or charge others for the right to use your Account, or otherwise transfer your Account, nor may you sell, charge others for the right to use, or transfer any Subscriptions other than if and as expressly permitted by this Agreement (including any Subscription Terms or Rules of Use) or as otherwise specifically permitted by Valve."
If they gonna cheat with your Copy of the Game and get caught by VAC, you will also receive a VAC ban.
Family Library Sharing User Guide
To say to that additional notice:
You're not allowed to give your credentials to other people; so giving your Family Sharing to people you don't know is already a violation to Steam Subscriber Agreement.
Family Sharing is meant to be used so you're the one who puts in the credentials on the other person's computer; you're the one who clicks 'Authorize this Computer' and ticks the other as an eligible user.
Otherwise I agree with what you just posted.
This applies to Family Viewing; only under local supervision.
Indeed but the fact is, most people "share" their Games to Friends anyway and mostly what happening is their "Friends" abusing it and using Cheats with their Copy of the Game and wondering why they got VAC banned too, creating a Thread in the VAC discussion and call it "VAC banned for no reason".
https://support.steampowered.com/kb_article.php?ref=5406-WFZC-5519
Do NOT share your Steam accounts.
Do NOT attempt to sell or buy Steam accounts.
Do NOT family share with anyone whose computer is not accessible to you.
That's the best advice I can give you.