That's exactly where Airbnb's business model collapses. They don't own or run the properties. They'll never be able to offer "it all just works" at any meaningful scale.
I think they can. It is pretty easy to start simply and experiment: AirBnB San Francisco. AirBnb Paris. AirBnB London. I'll give you an example. My wife is going to France with friends and we can pay money for a good experience but they are going 5-star and we can only afford 3-4 star which is where an AirBnB is also competitive. This sub-luxe market is wide open. If AirBnB isn't interested this is a YC startup for anyone who is.
You've not really addressed the core problem: they don't own the stuff. They are facilitating a transaction between you and the owner of the listing. It's very difficult to ensure any level of experience, especially without adding a ton of cost.
