I'm not the OP, but during the recent Studio Ghiblification craze there were a huge number of photos of families and kids passing along in facebook, twitter, and other social media. It was literally everywhere you looked. OpenAI obviously saw all of that. I don't think they actually care unless it's something bordering on illegal.

I agree. In practice OpenAI is unlikely to care about families uploading their own photos. I think the policy is mostly to stop random people from engaging in creepy activities with the photos of children.