NYC has laws that may seem onerous to you, but they exist as a direct response to problems that have already happened in the past and are already manifesting themselves in the modern AirBnb era. The issues are real, and the company has taken an attitude that the law doesn't apply to them. Fuck them.
Airbnb often implies that they are like Uber/Lyft, fighting some evil hotel lobby. That's also bullshit -- Uber is fighting cartels with strong local regulation at the municipal level. Hotels aren't organized the same way and frankly don't need the regulatory protection that cabs do. To the contrary, my understanding is that Airbnb was the party doing lots of heavy lobbying in Albany.
If they were smart, instead of carrying on like children, they should come up with a co-op hotel model that is compatible with the law, less capital intensive and closer to the spirit of their platform.