Family sharing vs sharing same iTunes id

please help.  Originally I set all our family iPhones with their own apple id and then used one iTunes id, now I can't get the iTunes ids to work with all the phones as we just picked up 3 iPhone 6's, since the 6 won't accept iTunes as a different apple id than what the phone is.  I have 7 members in my family (2 parent, 5 children) thus "family sharing" does not catch everyone.  ideas?

Correct.
Here is my problem. I would like to use our shared icloud account for storage as I always have (its significantly cheaper to have much more storage this way), but if I log into icloud this way on our devices it automatically logs in to find my friends with the same account on all of the devices.
This makes them unable to share location as it thinks they are all the device of a single person.
Haven't gotten this far yet because I'm scared to update my ipad, but based on what I'm seeing so far I am thinking "continuity" wont work either.
Looks like it will think one person is using all the devices...so for example if I look at something on my phone and put it down and the next thing that happens is my wife picks up her ipad she will have the option to continue what ever I was doing.
Not a privacy concern for me but it was a feature I was looking forward to that is going to be useless (and most likely a nuisance) for me as is location sharing.

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