That's not what the law is meant to prevent. It's meant to prevent me from sharing my online service (Netflix) account with my mother. It's meant to persuade me to tell my mother to get her own account. Clearly these people don't love their mothers.
http://www.netflix.com/TermsOfUse#instant specifies that this is "within your household".
More importantly, if there is a dragnet investigation and a dorm room gets arrested for sharing NetFlix with each other, can they still go to jail if they abided by the TOS?
Your stay at a hotel or meal at a restaurant is private business between you and that hotel/restaurant. Local law enforcement only gets involved if you choose not to pay.