Most like the people renting on AirBnB aren't going to be throwing a bunch of money into the city and will gravitate towards cheap or free entertainment.

The issue at hand is that the market doesn't "balance" in the sense of what's best for everyone. It balances based on where money is going each transaction cycle (ie each month or whatever cadence). I hate it when I hear about the market "balancing" on this web site because it's a myth that it will help anyone.

What AirBnb did was influence residential properties to become more lucrative areas to rent piecemeal instead of rent for long periods or purchase.

So what is "balancing" in this case? Balance means that a bunch of rich people buy houses, rent them out to people who can't or are unwilling to pay for full hotels, and inadvertently increase the price of people who would want to live in those areas. Since there is a surge of demand from those new people who couldn't afford these things before, now you have them paying for their own places in the middle of fucking nowhere and also taking up rental spaces (in small bits, but it adds up) in touristy cities which already had high rent. So now you have someone who is renting/owning a place somewhere else taking a week's vacation and taking up space that could have been rented/purchased to someone else for that week.

I think I read somewhere that Venice became a city of 50% revolving tourists because of how popular of a rental spot it was (this was AirBnb). The balance is that it's 50% tourists recycling in and out and few people can afford to live there since it's all hotels. Stop asking for fucking balance. The idea that it's helpful is a myth.