Like others have said, the issue is complicated. However, I think in balance that this action at the state level is bad.
In many areas, the primary issues with AirBNB are twofold: it bypasses hospitality regulation when it is in fact part of the hospitality industry, and it disrupts the residential rental market in the area. Both of these are legitimate concerns for any area, though for different populations.
For the first, it's a similar issues as with Uber and Lyft: regardless of what libertarians and others like to claim, regulations on insurance and such such for professional organizations exist largely to protect consumers as well as companies. Someone renting a room or a property through AirBNB almost certainly doesn't have the necessary insurance to protect a renter in the event of an incident nor to protect themselves in the case of a bad tenant. Further, without any kind of health or safety inspection, the quality and safety of the rentals are extremely suspect; yes, some of that is handled by word-of-mouth and ratings, but the average person doesn't know the finer points on pool treatment and the like.
The latter is a bigger issue in some places than in others, but that doesn't mean it isn't a valid concern. San Francisco, for example, is notorious for its high housing costs, and AirBNB is just making it worse by taking a percentage (however small) of potential properties off the rental market. While other areas of California aren't as bad, many still have a similar housing crunch. These properties are not zoned for short-term rental and were granted development permits with the explicit intent of providing long-term housing; AirBNB essentially negates that permit process. Since permits are all handled at the local municipal level, it seems counter-intuitive to have the state step in and essentially tell municipalities what they can or cannot permit. I cannot say if the same issues exist in Indiana, but the principle isn't any different.
While the state has a vested interest in keeping regulatory environments similar for the entire state, it's hard to argue that the municipalities are doing anything to hinder AirBNB *as it was meant to be used by its creators*; instead, the state is supporting behavior that AirBNB itself as well as the municipalities are against. That makes it rather hard to justify.