The outcome is to further sclerotize and limit the rental market. Now students cannot effectively sublet their apartments on Craigslist while out on summer break or study abroad, for a summer intern working at a company in the city. Now a couple can't rent out their apartment for the week while they go to Disneyworld.
To some degree I have fallen for the populist message in this article; the hoteliers are clearly reaping the most benefits from this legislation. However, in the long term, everyone in the city is harmed by unnecessarily restrictive laws.
The outcome is going to be a drive of this activity underground, as we have seen in alcohol prohibition and the formerly wild west of off-meter (or "gypsy") cabs in NYC. At least with Airbnb, there was a rating system and an escalation/authentication path.
Airbnb's failure was twofold: that of not spending as much capital and time as Uber/Lyft in changing the minds of lawmakers; and failing to address the targets of the legislation: serial short-term landlords. If Airbnb had addressed this issue, the hoteliers would not have had an argument for the public benefit.