I believe they live in the same home as another player, but they're not the same person. We have several of those situations, and it's fine as long as they're not behaving as multis shifting resources between each other, etc.
"You" hasn't sent/received any suspicious aid (to anyone). Their market activity is good/fair, nothing weird. They do cast on themselves, and have been running techs. They also have been communicating with people, and although unsavory have participated in a castle pass - but not to their household member.
Overall, it seems a fully active account. They may be filling the roll of mage in their alliance, which is fine - they're logging in and playing the game with their strategy at work.
With the new rules in place today, maybe they'll have confidence to grow more, or maybe they'll stick it out as they've been doing, that's fine too.
To answer the questions...
"how is that not considered a multi"
That described activity is actually really common, even in situations where the players aren't related. Elves have always made friends with other players, trading spells for protection or help with pre-re, etc. Playing that role in itself isn't a bad thing, if that's what people want to do.
Also, we don't want to discourage families to play together. Naturally they will want to strategize and help each other. This should be fine as long as it's reasonable. Obviously sending resources or castle passing would be disallowed, but I think using magic should be fine, it's pretty much the same thing players that play elf do anyways.
As long as that player is logging in, participating with their province mates in chats or whatever (team player), building up their kingdom, investing their time to learn the game and manage their kingdom. If the only action they did the whole game was just run TS and nothing else, then yeah that would be a good case for being a functional multi.
"what would prevent everyone else from just creating multiple other kingdoms to do the same?"
Theres a difference between a friend or family member giving support in a small way. It's a fine line, but it's there. What should stop someone from literally making a multi to do this would be the shame of getting caught, having all their hours of hard work excommunicado, and just the fact that we're all here trying to have fun and there isn't really enough of us to be doing that kind of thing (last point is just hopeful that ppl will just play the game and stop trying to pull some shit lol).
"that's less than twice your size seems wrong"
I agree we should look into making that kind of casting much more difficult or impossible. There's been a few chats about it before, so it's definitely a problem.