Indeed, I'd see it the same way - for individuals (and indeed families) it certainly is not really more secure - if anything, less so due to the likelihood and encouragement for families to put more intimate/sensitive and personal details into the environment.
This and things like Pair, the social network for couples, I would suspect are shooting for high 'value' - where value is correlated with selling that information to third parties (advertisers, at best; but other parties are possible customers too).
Perhaps it would be better to stick to "privacy" as that's the value i see here.
... affiliated organizations that (i) need to know that information in order to process it on FamilyLeaf’s behalf or to provide services available at FamilyLeaf’s websites, and (ii) that have agreed not to disclose it to others.
Looks cool! I'm hopeful they will be around awhile.