Before the smartphone era, the only possible way to ensure availability of personal transportation was to have a functioning taxi & livery industry. The use of medallions was actually to protect the public, ensuring all drivers were at least accountable and traceable and thus somewhat safe, just like today's Uber riders expect the company to perform background checks on drivers. Yes it benefitted embedded interests, but eliminating medallions would have been worse.

Also, tacking on taxes to hotel bills hurts them, by making visits more expensive and thus reducing demand.

But really nice hot takes.