We have come to a similar conclusion, with our first. This is really hard since, as has been echoed, these really are magical times. I'm wondering, in what ways have you shared with family the most?
We also decided the same, although to be fair we were going down that path anyway (neither my wife nor myself use Facebook or LinkedIn, Twitter is strictly professional). I'm setting up a private server with a photoblog which will be password protected right now, but it's sufficiently annoying to do that our daughter is now 6 months old and I still haven't finished it. We talk to our folks a lot via Skype and we do send some via Google Drive, but never shared publicly.
I've also started mailing prints of photos we really like, which is awesome, I totally recommend it.
