There's nothing xenophobic about wanting to build a community of dedicated citizens. I didn't invent a new problem, you're just failing to account for it in your capitalistic solution. Zoning laws exist for a reason and AirBnB is in direct conflict with them.

Again it goes back to what you want to prioritize, a well knit community or a city of hotel rooms mixed with residential housing that encourages more rent seeking. You're willing to allow for a lower quality and further enriching an already rich upper class. So not only do renters have to pay high rents and never own, they now need to sacrifice any semblance of community as the incentives to AirBnB a place would displace all long term rentals.

Not everything that can be monetized and made efficient should be, but I realize that's super counter to the Ayn Rand HN crowd. I maybe would've agreed with you 10 years ago but I've since realized the flaws in libertarian thinking. Either that or I'm wrong and unbridled capitalism is the right solution to all the problems but I seriously doubt it.