Given that the original justification behind he feature was returning the ability to share a game within a household that was lost (or at least made much more inconvenient) with the move to digital only, I see no issue with this. If someone is exploiting that system (not judging, I do/did too, because why not), or even has actual family in another country, then unlucky they now have to let the other party actually use their account if they want them to be able play your games. Anyone in the actual situation the feature was meant for should be unaffected aside from some edge cases like holidays.

you can still try to go around it by doing the same as before, log into the other person’s machine