Curious, and I haven't heard many comments on this: does this set a precedent that other states are likely to follow, and if so, is this a serious threat to the Airbnb business?
It's probably not even a serious threat in NYC; the ruling doesn't appear to bind on Airbnb itself in any ways, and apparently is only sporadically enforced.
It's likely that cities that have substantial tourism and insufficient hotel space in the tourist areas will see an increase in short-term internet-enabled rentals and will have to decide how they want to handle the issue. Austin just put in place a new short-term-rentals policy ~a year ago. It's a pretty fair policy IMO (distinguishes between owner-occupied vs investor/landlord properties, requires collection of hotel tax for the city, etc.). I don't think this'll kill Airbnb & its ilk any more than collection of state sales taxes will kill ecommerce businesses. As business models go mainstream, they inevitably end up getting regulated & taxed. It's only when they're little & marginal that they can fly under the radar.
This has to do with a manicpal law, so no. If another city had an identical law then maybe, but airbnb is plainly in violation of it--the court just triple checked.