That being said, its still a valid point...hotel customers need "protection" from unscroupulous "hoteliers" becase, for example, they are tourists from a foreign country or small-town USA etc and are thus less sophisticated and make easy prey (historically) for scam-artists (bait ans switch rooms, or general hold-up probelms, etc).
The Interesting question is this: Does the transparency and accountability of Online provide adequate protection? If it does not, does it have the potential to? Back in the day (like, pre-ww2) its easy to imagine things going on in hotels that hurt clients but were "behind the scenes" with no proof other than he-said-she-said. But now we have e-mail, terms of service, electronic booking, CCTV and other things that might change the calculus a bit--at the public policy level.
Open for debate, at least.