No, but the fact that it's illegal to rent out a building I own for a few weeks while I'm on vacation is another paper cut among the many I have already received when researching NY and NYC government. This wouldn't affect me directly (as I've said, living there was ruled out), but I don't approve. It does, therefore, influence my inclination to visit. If this were the only issue, it wouldn't be a deal breaker. I'd just declare it as unfortunate and visit for longer than 29 days to avoid legal issues.
>Neighbors lose by having strangers in their buildings
I agree with this, but this sounds like a problem to be handled by the owner of the establishment, not a problem to be handled by government.
>renters lose out on available space
Only if those renters are offering places for short term visits anyway. I have no idea whether that's a common scenario, but leasers are hardly missing out because I'm renting out an extra room.
>would you want that whole awkward scenario happening on your front step?
I probably wouldn't, but I still don't consider it to be the government's job to ensure that it isn't happening.