"Hotels" does not solve "I'd like to stay in an isolated cabin in the countryside", or various other things that are readily available on vacation rental sites.
(AirBnB has lots of other problems, but "hotels" alone are not a complete replacement for what it provides.)
Fair enough, hotels don't fully cover the entire AirBnB usecase, but cabin rentals and bed-and-breakfasts in the country have been around forever, too.
My point is, commercial rentals exist because of the problems AirBnB are having. They're trying to "disrupt" the industry by not providing the protections and safeguards to save money, and basically running into all of the problems that led to the commercial rental industry in the first place.
Their innovation is collecting a fee while pushing the dirty work off to unsophisticated 3rd party property owners.
Society forgot why hotels were created, so now we're re-learning it via AirBnB.