The hotel lobby uses fear and rhetoric as a reason to crackdown on AirBnB. The reason they have to resort to tricks is AirBnB is simply a superior product. It's the same thing of the taxi industry vs. Uber. Hell speaking of Taiwan: in one of the few cities in Taiwan without Uber - how long was it before I got scammed by a taxi driver? My very first driver in a city without Uber pulled the "I don't have change" scam.
I am someone who has 12+ reviewers (as a renter not a host) and it is how I am staying in Taiwan at the moment (several months already). AirBnB is now my preferred platform because I've yet to have any issue with payments, reviewed hosts tend to be reliable and I only ever had 1 issue over 5 years of use and AirBnB sorted it out. If I tried to deal with local real estate agents in Taiwan then they would try to force me into a 12 month contract, might steal my deposit or try to oversell me (if they will even bother with me considering I am on a tourist visa! Or even being able to find a real estate agent who can speak English can be hard too).
Banning AirBnB if anything opens people up to getting scammed and put in danger. I've lost count of how many times I got "double charged" by a hostel / hotel (I'm scared that eventually hostel / hotel will steal my credit card information and give it away). I've lost count of how many times a hostel / cheap hotel "lost my reservation". Then at cheap hostels / hotels there is an issue of guests robbing each other and robbers coming into the hotels. And hostels and hotels never seem to do anything to fix the crime stuff (even though a couple CCTVs wouldn't eat into their thick profits). In the rarest cases you can have people in hostels / hotels rape and even assault each other. A lot of these things just can't happen on AirBnB (especially if you rent a whole place without roommates).
I was someone who used AirBnB in Japan before Japan's "AirBnB Purge". I don't see their claim of AirBnB competing against 4 star hotels because on AirBnB the places I rented (studios) were cheaper than hostels. I have a receipt of a studio in Fukuoka (pre-AirBnB Purge) where my total was $22 a night (cheaper than most Japanese hostels). And I doubt said person renting out these studios is clearing $500,000 a year and driving a Ferrari (contrary to what they claim in anti-AirBnB articles). Even a lot of the overcharged properties in AirBnB often seem available a lot (meaning they only rent out maybe 10 nights in a month not the whole 30).
Japan's AirBnB purge hasn't (contrary to article) increased the number of housing options on there. I tried looking at Hokkaido the other day and barely anything came up for under $1,000. Whereas pre-Purge there would had been many studio options for tourists.
Same would happen to Taiwan. If they purge AirBnB here then the app would be almost devoid of listings and then I would probably stay away from Taiwan for good. It's no life for me to live in a hostel full of transients or a 2 star motel that has rats / mold in it (and have to deal with drunk guests and guests robbing each other).