Wouldn't it be better to find some way to incentivise good behaviour from people instead of banning something which often allows cheaper, more comfortable stays than hotels, whilst also providing homeowners with a way of making money efficiently from their property?
It's hard to make people behave well (for any definition of "well"), and the way it's usually done involves community - a social structure composed of people who spend significant time together, and which evolves and maintains its own code of conduct.
It's easier to mitigate bad behavior. That's why legit hospitality businesses are structured and regulated in a way that "eats" the consequences of bad conduct and doesn't let them leak out. AirBnB did nothing to "find some way to incentivise good behaviour from people"[0], but unleashed those people onto communities that were unprepared to handle the bad behaviour.
It's kind of like - wouldn't it be better to find a way to neuter nuclear waste so that it's not dangerous? Yes, it would. But we don't know how to do that, so the next best alternative is to box it up in designated storage locations. AirBnB is essentially letting anyone with a house become a nuclear storage facility, with no care for safe storage.
--
[0] - well, they made a rating system, but I think that in 2019, it's universally recognized that rating systems are trivially gameable and generally don't work too well.
