Why don't you get your condo association to ban short term rentals? Or, get them to assess fines on the condo owner if there are neighbor complaints about noise when there's a short term renter occupying the space? Why does the government have to get involved when you have a governing body that is much closer to the problem and challenges of your building rather than a "one size fits all" solution.
Simple, because that doesn't blanket-suppress AirBnB type competition to the established players in the whole city/county/State. If AirBnB/Uber type businesses joined forces maybe they could swing more money and lobbyists than the established players in places like NYC/NYS, and then you can bet there would start being laws passed restricting hotels/motels and costing them money and business and opening the market to AirBnB type businesses.
It's all about the Benjamins to politicians and regulators, doubly-so in NY. They could not care less about your safety, comfort, or well-being unless it benefits them in some way.
The only reason AirBnB (and Uber/Lyft, etc) type businesses are growing is that government and the established players are forcing prices high enough above what the market would otherwise set that more and more people see the risks as worth it. If hotel/motel and other similar temporary accommodation businesses dropped prices and offered better quality/value, most AirBnB type activity would die on the vine. Same with Uber/Lyft vs cab companies.