I'm much more inclined to believe EJ than Airbnb's spin. The week after EJ's story appeared one of my writers (I'm an editor at a travel website) approached EJ for a story we were doing about safety and vacation rentals. She helped out on the story, but didn't want any more attention drawn to her case at that point. She's been thrust back into the spotlight b/c of Airbnb's spin, not because she's out to get them. If her story was fake, Airbnb wouldn't be doing the serious damage control they're engaged in now.
I think they're seriously worried that the attention to the case will highlight two big weaknesses of their product: 1. In many markets, it's illegal to do short-term rentals, 2. Homeowners/renters insurance doesn't cover damages in these situations. Many markets won't crack down on these rentals (see the NYT story about SF rentals last weekend), but if they in the name of safety or code violations, Airbnb's got a problem. And if people start getting spooked about insurance issues, they're screwed from the other end.
I think they're seriously worried that the attention to the case will highlight two big weaknesses of their product: 1. In many markets, it's illegal to do short-term rentals, 2. Homeowners/renters insurance doesn't cover damages in these situations. Many markets won't crack down on these rentals (see the NYT story about SF rentals last weekend), but if they in the name of safety or code violations, Airbnb's got a problem. And if people start getting spooked about insurance issues, they're screwed from the other end.