The issue isn't "what should we do here," which is a political question, for whom each person will have their own answer. The question is what do you do about a "we're just a venue, we're not actually conducting business" company that is very clearly facilitating mass-violation of laws.
This undermines rule of law, simply because our legal system isn't designed for centralized vehicles for criminal behavior, without being able to charge the catalyst for the behavior, the app, with penalty such that it compels behavior going forward. Facilitating these crimes is criminal behavior.
It's a tough question, both politically, and practically. We like the idea of AirBnB, but if we can't find a way to create an enforcement mechanism for local hotel rules, then we're basically endorsing lawlessness... which isn't politically sustainable.
