I don’t think this is the case here, smart contracts actually provide a very valuable service for this use case!
The important thing to note is that these rental agreements usually cost a lot of money and logistics that are being made much more convenient using ethereum
Re: Your example about the car — you would likely never lend out a car to someone you have 0 trust in. But you might keep some deposit just in case something happens, just like a regular rental service would. Automating that for people is very useful in my opinion!
Logistical issues will get better over time, but this suffers from the same logistics problem as Facebook marketplace, Craigslist, etc. and these services are extremely popular
Re: describing it as a library vs Airbnb — I think a library is a useful description of this. We are trying to be closer to a protocol service for people to create a library with their friends and lend things out to people. I don’t see the issue with using “library” vs “Airbnb for stuff”