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People may share their house with 'unrelated' people as long as they 'live together as a single housekeeping unit'. Arrangements where the house is shared but the people do not 'live together', such as renting a room, are covered elsewhere in the bylaw.
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The capacity of dwellings is limited by the building code for health and safety reasons, based on physical characteristics such as the size of bedrooms. These zoning provisions are about living arrangements, not capacity.
The word 'family' in the current zoning bylaw is a defined term that does not correspond with the use of the term in casual conversation. Since the new definition of 'household' is essentially the same as the old definition of 'family', two separate 'families' under the old definition would never be a single 'household' under the new one.
Health and safety laws already prevent overcrowding. This change makes the bylaw more inclusive and flexible to reflect the values stated in the Town Meeting resolution.