I think we agree that the TOS as written is one household (not locations. But, and INAL, I would venture that there is a case to be made that Netflix invalidated their own TOS by not just tweeting slogans like “Love is password sharing” but also public comments by their CEO supporting the practice and through the “pay once use anywhere” and “password sharing” ad campaigns over the years.
I have no problem with them trying to rein in the practice but it would be hard based on their actions and many years of allowed / accepted / promoted practice.
If they would get their pricing to something logical they would likely not get the push back. They are the only ones to charge by number of screens and by resolution. That is dumb. Make it something like $10 for 4k and some number of profiles, then a few dollars for each additional profile would net the same.
They are insane if they think that many people paying $20+ per month and sharing between multiple household (parents, siblings, etc.) will magically turn into $60+ or $80+. Most likely the parents and siblings will not get their own (or maybe the lowest tier with ads) and the main subscriber drops since the price is too high for a single person and single stream. So, instead of $60 or $80 they get maybe $6 or $12.
Edit: clarified TOS at household, not location.