On the one hand, it seemed like there might be a catch. An unrestricted 10-person share system could be used by organized gamers to set up systems so that, for single-player experiences and MP experiences that people aren't playing together, they could sort of ish pay 1/10th the cost for a game. Even though actual purchases would exceed that for various reasons, the reality could turn out as awkward for publishers as the used games market currently is.

But at the same time, not telling people and then announcing that it's a demo system later when people are betting on it being the saving grace for the console would be a PR catastrophe. Surely Microsoft's people aren't that stupid...

On the flip side, Microsoft's marketing people clearly are that stupid.

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I'm not sure what to think right now, although I'm actually leaning a little toward the rumour being true.

Half because a seeming insider at NeoGAF confirmed it, and half because the whole "1 hour offline maximum when playing on separate console" policy would be a completely consistent policy to pair with a 1-hour demo restriction.