All of that is true and is why an AirBnb costs more than renting an apartment. However, the cost difference between an AirBnb and a comparable hotel room is all regulation.
Without the regulation, it would be unprofitable to sublease a single apartment on AirBnb as you'd be unable to compete with people who can run a whole building at scale with dedicated maid service etc.
No, you've oversimplified again. Many whole-home Airbnb rentals --- most, if the narrative of the site is to believed --- are owner-occupied. They don't have the inventory risk problem. A hotel is an investment that must make some minimum return, or else go out of business.
I had the impression that most AirBnbs in NYC were not owner-occupied but full-time AirBnbs and that's what people were complaining about.
Anyways if you improve the legal alternatives and the margins get low enough I think a lot of the owner-occupied ones will simply give up. Right now it's so insanely profitable that it's well worth the work and inconveniences (and legal risk!) even for middle class people.
Long-term renters make up-front commitments. They are "buying in bulk", which reduces the inventory risk for the landlord. A hotelier, on the other hand, has to set prices to account for vacancy rates, and for the risk that their vacancy rate estimation is going to be wrong.
Long-term renters are self-serve customers. Short-term renters depart after a few days, leaving the room they leased uninhabitable. Not only does it cost money to reset and restock a room after a guest leaves, but to do so involves retaining staff, which introduces all the expense of headcount.