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That is not what is happening though, sharing with one person, opens up the folder for all people with a link.

How else would you share with someone who has no @gmail account, exactly?

I am not saying it’s bad for all use cases, but it should be better communicated and optional.

If I share something with my family, who are all on Google, I would like it to ONLY be available to them. Right now there is no way to do it.

OAuth or OTP to email comes to mind for now.

I cannot wait to see how you'd explain that to your 93-year-old great-grandfather.