I'd like to see what David can tell us, but — as I see it — the sentence above with the stranded preposition "with" is equivalent to (2):
- I needed people I could share my life with = I needed people with whom I could share my life.
- I needed people to share my life with = I needed people with whom to share my life.
As I said, sentence (1) is odd and vague in meaning. The preposition "with" completes the intended meaning.
I completely agree with you, Gustavo, that "with" is needed for the "with"-meaning. Sentence (1) cannot be interpreted to mean "I needed people that I could share my life with," even if one could guess that the latter was what someone who speaks very little English meant to say. Similarly, "I needed people to dance" cannot mean "I needed people to dance with."
Like Gustavo said, sentence 1 has a different meaning. It's the sense of direction: sentence 1 means you want other people to come and share your life. You want them to come into your life and share it - it's kind of not a reciprocal thing. Sentence 2 means you want to go and share your life with others, and be reciprocal about it - to share back and forth. I think that sentence 1 is correct, if you want to use it in that sense - but, like Gustavo said, it's not what someone would usually say, because of the meaning. Sentence 2 is more correct because of culture/social aspects/meaning.
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