Airbnb works really well for the awkward space between short-term and long-term. For example, if you're spending three months in Bangkok -- you'll want to have the features of an apartment (full kitchen, laundry, etc.).
The other niche is rooms for rent. This is primary used by young and cash-constrained folks -- but it's a surprisingly large number of bookings on Airbnb.
Personally, I think having more travel options for young people and the less wealthy is a hugely positive development.