Choose your words carefully as you discuss. It does not share your actual password. It shares an encrypted copy of it to allow people to access your network, and this is key, for internet access only.
I know that, there are many statements about the encrypted access data. I dislike that I have to opt out. I dislike that somebody tells "everybody" else: "Feel free to use it." I pay for my bandwidth and the selfish me wants to use it exclusively.
Just like I don't put my car keys outside on the gate for everybody's use.
My LAN has a whitelist of allowed devices, identified by their MAC address. If I have not listed the notebook or smartphone of somebody else, sorry, no access except via the guest access port with some limited privileges.