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As you stated you can just use Find My Friends. Its just a one time set up and then it works just as you need/want it to.

My family relied on Find My iPhone app to find each other's lost iOS device (as we often put the phone in silent mode). Find My Friends lack "Play Sound" feature, which makes it a no go.
 
Photo stream, purchasing an app once for all devices, iTunes Match

Two completely different accounts!!

You can have a seperate iTunes account (purchases, iTunes Match, etc) and a separate iCloud account. You should not be sharing an iCloud account. Only iTunes.

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You don't understand the issue. It is not about sharing anything via icloud OTHER than find my iphone. In ios6 you could have your own personal icloud account for everything BUT find my iphone; then also create a shared icloud account with ONLY find my iphone enabled.

This allowed families to see ALL of their ios devices from ONE single find my iphone login. Much better, particularly if you have kids with ipods that they lose behind the couch (so you could send the ping sound). Now you can't do that. I can only see my personal devices in find my iphone.

So if my wife or kids lose their iphone, I will have to find a pc and logon with their individual logon to find it.

The old way was more convenient (but I guess less secure; which is way Apple does not allow it anymore?). No one from Apple has said anything though. So it is not clear if this was intentional or not.

Why don't you know your kids iCloud passwords? That is the easiest way to deal with this. I've never been able to get multiple iCloud accounts to work with Find My iPhone on one device. Not sure how you set that up. I just know the password on the other iCloud account.
 
Clearly whatever the workarounds or whatnot are, simply put, it was easier for people to do it before compared to now. Right, wrong, up, down, doesn't change that simple fact.
 
Two completely different accounts!!

You can have a seperate iTunes account (purchases, iTunes Match, etc) and a separate iCloud account. You should not be sharing an iCloud account. Only iTunes.

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Why don't you know your kids iCloud passwords? That is the easiest way to deal with this. I've never been able to get multiple iCloud accounts to work with Find My iPhone on one device. Not sure how you set that up. I just know the password on the other iCloud account.

I know the paswords. But it was easier to have ONE universal find my iphone account to see all devices in your family in one screen. In ios 6, all you had to do was add a new icloud account (that is, my "universal" family icloud account). Then disable everything in it, except for find my iphone. On the personal icloud account, on the same device, everything you wanted to have on icloud would be enabled EXCEPT for find my iphone.

So two icloud accounts, with 2 different usernames/passwords -- one device. One for photostream, backups, etc. The other icloud account ONLY for find my iphone.

That's how it was set up. With ios7 you can't do that. Find my iphone only shows up under the original primary icloud account that is installed on a device.
 
True, but not as convenient as one universal login. And now I have to remember 3 different usernames/passwords. Me, wife, kids. And they will never remember.
Use a password safe. If you lose the passwords, you will sooner or later get in trouble anyway (remember that "Find my iPhone" also enables the activation lock in iOS 7).

I don't really see what the big deal is. For tracking your family's locations, use "Find my Friends". If someone needs to ping their phone, they have to enter their password. IMO leaving "Find my iPhone" completely open in a shared account would be bad design, because it can not only track, but also lock or erase someone else's device (by mistake or intentionally).
 
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