Managed User vs Home User—the differences?

I’ve always created managed user accounts for the people with whom I share my Plex server. So they log in with my account (they send me the code they see on their TV), and then just choose their username. I’d like to switch this over to everyone having their own Plex account, so that they log into Plex with their own account. My thinking is that that way I won’t have to respond to requests to “log me back in, pls!” and worry with setting up PIN codes.

Is my thinking correct on this? Plex serves up a warning when I attempt to “Invite Home User,” so want to make sure I’m not missing anything. I can still limit what libraries an invited home user has access to, correct? If there are any “down sides” to this, please let me know. I’ve been sharing my server with 8 or 10 people for many years and problems have been very rare.

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