teceem: But if this is going to be about politics: I'm out!
Defining "household" isn't political. I agree with teceem in this case.
I'd treat it your games like a console game. My interpretation:
1. Anyone visiting or living in your house / apartment can play it on your PCs inside the house.
(This allows flexibility to remove unnecessary obstacles like letting your friends demo games.)
2. You shouldn't lend the game to people living outside your household. Lending non-household people your PC or notebook for an indefinite amount of time loaded with your library shouldn't bypass this.
(This is to encourage people to buy their own copy.)
3. If you do lend a game to non-household member (within a reasonable vicinity and situation), you're limited to sharing that lent copy with one person at a time and you're not allowed to play that same game during the duration of that lending. When they do return it, they must uninstall all versions and copies of the game from their PCs, storage, etc. If they did anything illegal with their copy with the game, that legal burden should be placed on you, the original license owner.
(Treated the same as lending out a book, movies, console game, etc.)
4. For MP games without official LAN support, people in your house will need to buy a 2nd copy if you want to play simultaneously with each other.
(There is no legal way around this because you must agree to the terms and conditions to use third-party servers.)
With a couple other exceptions I can't think of now, everything else is piracy.