Let's say you live alone and you want to see a movie. You pay for it. Same if I want to do it at my home. we both pay and we have the legal right to see it. What if suddenly, 20 friends come to my home to see the movie without paying as they were in their homes? Downloading is the same case. That's what I mean. You can't have the best of both worlds. Either you all pay to see it or no one.
You read the licence wrong. When you buy, rent, you're explicity forbid to do public playing: that means you cannot show other people the material, they have to pay for it. That way they're sure you dont mount a cinema in your home and invite the whole city.
That's simply not true. Public playing means that you cannot go to a part and project on a screen (as an example). In the confines of your home is not considered public playing.