On the other hand, I just got back from traveling to Europe, where all of the bookings we made were AirBnB. My wife and I were traveling with our 4 month old baby, and there weren't any hotels that could really meet our needs as well as the apartments that we rented. The trip would have been much harder without AirBnB.
I think Santa Monica went too far here -- they should have left some wiggle room for folks who want to rent out their place on weekends and such, like the folks we rented from in Vienna.