The "family sharing" aspect of Xbox One has been compared to iTunes Home Sharing. If that's the case, you wouldn't have been able to share games with your brother anyway -- Home Sharing only works for systems that are on the same Wi-Fi network. I don't think Microsoft's original idea was as cool as you think it was.
Microsoft's "family sharing" (terrible name) allowed you to share games in your library with up to 10 people, regardless of where they were in the world[1]. It didn't just extend to people in the same house. With this announcement we lose that feature.
