> The primary complaint is that Verified ID reduces the number of bookings. This is only a concern to people who are using AirBnB illegally-i.e., as an unregistered hotel--and thus depend on volume. The people using AirBnB for its proper purpose--occasional temporary "guests"--are largely unaffected by this.

You incorrectly assume here that the only people who rely on a high volume of guests are those who do so illegally. Many Airbnb hosts operate a vacation rental property that they own. And they often rely on the income that property generates. These people – the ones that often maintain the best vacation rentals Airbnb offers – face the most damage from a drop in bookings. And Airbnb should be very concerned about that.