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Interesting. Was curious, when Chesky and co came to YC with the idea of letting people live in other people's homes, what was the more evolved scenario you imagined at the time ? (Especially considering this was '09 and very hard to imagine)
I had a theory about how Airbnb got huge, but it was wrong. I thought they'd do it by eventually getting hotels as well, not that a whole infrastructure of hosts would spring up. You can see traces of this thinking here: http://paulgraham.com/airbnb.html
This was VERY very interesting. Thank you for sharing. Yes, you were right that there is a continuum between sofas and hotels. And the continuum turned out to be much larger than the destination (hotels). The continuum became the market.
Were you two familiar with the success of couchsurfing at all, in the years before AirBnB?
They did acquire HotelTonight to capture market share of hotel bookings. 
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