I don't know - I have a lot of colleagues who love meeting a wacky host and their dog, and like the varying accommodation styles.
It's not my cup of tea either, but a lot of people genuinely seem to love the vibe and don't want to go back to hotels.
I just think that those still enamoured by it haven’t been burned yet. There is very little [effective] recourse when your AirBnB takes a turn for the worse. There are enough horror stories out there. I personally think the value to risk ratio is way off for them these days. It isn’t cheap anymore and that makes it way less appealing.
Generally, I'm either doing something where I'm renting a whole house in a VRBO style thing where it's likely someone's full-time rental property and has been for a while or I'm essentially looking for something barely above couch surfing where I expect to show up in the evening, go to bed, then wake up and leave for the day.
I've had plenty of minor sub-optimal experiences, but usually nothing that wasn't called out in the listing, and I've also had plenty of experiences with hosts that took things seriously and were amazing to work with. Most of the stories I've seen of people getting burned was though listings that at least personally, I would have found a little suspicious in terms of price-to-quality, and level of professionalism. They seem to prey on people who want the experience of a hotel, but don't want to pay for it.
I have one of each: a funny AirBNB caper and a totally disgusting hotel story I wouldn't bother telling. The latter involves stains of the uhh... lonely masculine sort... on towels. Shudder.