This is annoying because an actual family who share a single tv may legitimately want separate profiles, in a way that is not password sharing per se. So now if my wife and I want to have our own separate profiles on Netflix they will charge us extra?

That doesn't say that you only get one adult profile on the base price. It says that you can add two additional households, and those get additional profiles. It remains to be seen but I imagine those households will get fully separate usernames and passwords.

It doesn't say that the existing household won't retain the five profiles it used to.

To my reading, it says exactly that. But we will see.

Netflix already allows you to watch on multiple devices simultaneously, and already allows you to watch from places other than your home. (Say, the gym, or airport, I dunno). It doesn't say they are going to stop doing that. So I don't know how they'd knwo which "household" a watcher is in, and the info doesn't say anything about new ways to monitor number of households, it doesn't mention households at all, only profiles. I can't read it in any way but they are reducing the number of profiles you get without paying extra.

But we'll find out!

That is an odd way to do it... people in the same household will still have to pay to have multiple profiles? That seems really crappy, going to make customers really unhappy. But will it lose them any? I don't know, I mean, what choice do you have, most people on netflix want netflix content.

Meanwhile, people can still share with folks in other households as long as they all share the same profile? Weird.

i guess it's hard to enforce otherwise. They already limit to only X simultaneous streams at once, depending on your account tier. But this does seem a way that will surely enrage customers... they probably know what they're doing and know it won't hurt their bottom line regardless?