Some aging statistical research shows that if you have a bad experience you'll share it with 26 other people; having a good experience nets only 13 people. Multiply that by the internet and predict the market effects.
As disastrous as this is to EJ and her life, I think it'll be the utter ruin of AirBnB.
And why does YC have a "precarious image"? I've never heard anything of that nature. Every YC person whom I've spoken to (albeit not a huge percentage!) has loved the program.