They need to get partying off the platform. It's terrible for neighbors and hosts, and it's not even much revenue; the partiers usually book for one night. Regular guests on average stay 4-5 nights.
This thing took place in London, a market which is reasonably well supplied with such things.
Of course, if you want to bring your own booze, openly use illegal drugs, invite guests who are under the legal drinking age, or have access to beds, you might choose to rent an apartment anyway.
But I'm not convinced that's how politics works.
You can just as easily book a hotel and throw a party there and do all sorts of damage. They don't take much of a deposit either (or they hold a card) because there's a fine line between protecting yourself and a sensible amount for your average guest.
The problem here is that AirBnB takes a good chunk of a booking and doesn't do much to vet guests. They also haven't shown to be friendly and trusting with hosts that make claims even though they market a policy to protect larger losses to make you feel more willing to add your home to the pool.
I've been lucky; only had a few bookings I wouldn't want back and mostly they just destroy the hot tub with spilled drinks and I have to refill it. I try to avoid one-night stays as much as possible. I set a higher deposit too to filter our the partiers and don't do instant book. They'll choose a place with a lower deposit and instant-book instead. I also have 3 outdoor cameras so I can see what's going on at my place and how many people are showing up. I'm legally approved to sleep 16. So if it gets crazy; I'll call the police.
I think it's stupid to rent out a condo unless you vet every guest manually. However, I'd still ban it if I was on their HOA. It's a real security issue. You have to trust the person who books and everyone they bring. AirBnB should enact a sizable fine for exceeding their approved guests. Then we could just submit video/image evidence of how many people came and AirBnB could hit the guest with the fine and not be so stingy with their "insurance" policy for hosts.
the other thing that helps is that whatever happens in a hotel is not happening to a place of permanent residence- someone's home. if partygoers cause damage that spills into my room, I can get another room. if partygoers next door cause damage that spills into my house, i'm out of luck (not to mention so is the host).
[1] https://www.airbnb.com/help/article/59/how-do-i-add-a-securi...
Free time!? You're not getting that time back you know, perhaps it cost little; I gather from this you're not an experienced landlord.