Will there be a Lion OS Family Pack downloadable purchase? Or if not, a Family DVD hard copy purchase instead?

You don't have to! Mac OS Lion, which is downloaded from the AppStore, could be installed on multiple home computers. So just download once, and install it.

It's an App Store purchase which comes with a license to install on all Macs you control in your household.

It's actually an amazing deal. The $30 is cheap to start with just for a single install. In the past you were able to purchase a family pack, but at a somewhat higher price. Snow Leopard was the same price, but it didn't offer much in terms of new features and other things that the end user would really appreciate. It was more of a clean-up release that optimized the OS. Most of the stuff was "under the hood". With Lion offering so much, I wasn't expecting them to stay with the $30 price tag... especially for multiple installations.

So how does this work? My daughter and my wife both have their own Apple IDs. So how can they use the upgrade I've paid for with mine?

What you get is the installer file, but the Apple ID isn't "branded" to that file. So you can transfer the installer to a different computer and install Lion on that computer, without having a look which Apple ID is used on that computer.

Thanks! That is great!

There trying to price Microsoft out of business.

Now hopefully all software manufactures will pony up to this idea.