Technology has always outrun regulation. It’s not any different in these cases. Regulators will catch up as they always have. This, truly, is how progress has been made since the dawn of time.
You’re taking the same position people took against the printing press, automobiles, and computers when they were all in their infancy.
Restaurants in people’s homes were incredibly common until health regulators showed up.
Yes I did sort of lump those together. But it's not 100% enforcement either. Lots of place didn't and don't have rules against short term rentals - but we're seeing more and more pop up in response to Abnb