As I anticipated might happen, I figured it out through trial-and-error. I have limited understanding of linux/unix/freebsd & with the limited info I found (the definitive pfsense guide & http://doc.pfsense.org/index.php/Traffic_Shaping_Guide#Limiter) I couldn't figure it out. Sure enough its THIS simple:
setup two limiters (as suggested), apply to firewall rule (I did it to LAN). I knew that, however there are a few catches a newbie like me didn't catch:
1)you cannot set the Destination to WAN address (I believe because it will them pump it through WAN, bypassing the virtual dummynet limiters)
2)you HAVE to put the rule ABOVE the 'Default allow LAN to any rule'. Either that or simply modify that existing rule to add the in/out limiters
I was pulling my hair out. Sure enough it IS working in 3rd way I described above, where two or more people cannot reach past the set limiter. Right now I am testing the schedule-based aspect of this, crossing my fingers. I am sure some more knowledgeable people are giggling at me.
If anyone wants to chime-in the best way to setup some kind of content filter (without changing our existing DNS system) through pfSense my ears are open wide!
Also note to admin's again:
Broken link: http://files.pfsense.org/tutorials/squidguard/squidGuardQuick.htm on the main tutorial page: http://doc.pfsense.org/index.php/Tutorials
Side note to people use the schedules: you can't use a space in the name, it took me like 5min to figure out why it didn't like mine