I find it depressing how this will probably go away, and people like me who can't afford to pay for a stay at an hotel will just lose the option of taking the risk. Hurray for the infantilization of society! /s
When I am traveling - for business or pleasure - the last thing I want to do is scramble to figure out where I will sleep that night. I value my time too much, especially for a pleasure trip, to go through that kind of ordeal.
Also, you can save money if you pay in advance for your hotel. You won't have time to even comparison shop if you're rushing at the very very last minute.
So, I wouldn't say the risk is overrated, but instead that people can stomach different amount of risk.
I like to be well prepared and have firm plans on my trips, but I know other friends will just book the first things they find and figure out what they're doing when they get there.
I'd say both are true. In this very thread, a user was saying that one is essentially at the mercy of the host, when that's not true, or at least not usually. Sure, it's still more risky than an hotel reservation, but I'd still say the risk is overrated - it's not that riskier.
That's assuming that you can find a hotel with vacancy easily (not always the case, especially when special events are occurring), then find transportation to get there. That's not always going to be easy if you don't speak the language, arrived to the location late at night, are traveling with kids, etc.
In places that aren't the middle of nowhere, there aren't a lot of savings, if any. Its a lot of people hoping the hotels get booked for some meeting or trade event and now tourists get fucked and have to use their shitty service, at the same price but no housekeeping, security, etc. In Chicago this happens every so often due to all the events we host here.
Granted, Manhattan, where I tried to book an apartment, is a bit of a special location, but the pricing was not that much lower from the hotels.
[1] https://www.airbnb.ca/rooms/6843251
There are definitely still bargains to be found.