In many cases, the prices are noticeably better, but the two big other reasons are location and a unique experience.
The last time I traveled, it was to Europe (I'm US-based), where I visited France, Germany, and Switzerland. The AirBnB we had in Provins, France was amazing—it was basically just a shed in a backyard (far enough away from the house that no sound reached there), but it was very well-appointed, and right outside the window were chickens, and we were encouraged to just go take freshly-laid eggs for our breakfast.
When we stayed in a guest room in a German village near the border with France (I'm afraid I've forgotten the exact location), the host couple invited us down for drinks in the evening—we're not big drinkers, so we didn't take much, but the selection was (at least to our American eyes) amazing, and the company was just lovely.
On the other hand, our AirBnB in Switzerland was almost as bad as some of the horror stories being told here. The host couple was disinterested almost to the point of hostility, and they left us a very bad review on AirBnB afterward, for reasons I can no longer recall, after pressuring us to give them a perfect review. Even if the pandemic had not stopped our travel after that, this experience was enough that we were seriously, seriously reconsidering using AirBnB ever again.
And that's the thing: when you're planning a vacation, one bad experience can so easily overwhelm all the good experiences—especially when it comes to having a safe, clean, reliable place to sleep at night.
Chores and curfews, no (although they often have rules that you have to be "quiet" after a certain time). Cleaning fees, yes.
Why would anyone use them?
Honestly I can only think of two good reasons.
You want to stay somewhere really out of the way where there aren't any hotels.
Sometimes when you are 5 or more people it can be cheaper to rent one large apartment rather than 3+ hotel rooms.
I know sometimes people also use them if they're going to be staying for a several weeks and want a real kitchen, living room etc.
Other than that, I would never use Airbnb. And even in the cases where Airbnb would be useful, I would seriously consider booking with another company before using Airbnb.
Full disclosure. Never personally had a problem with AirBnb, but heard enough stories and know enough people who have.
It's not about money, for me at least, but the experience. Hotels are generally boring, soulless, and isolated, whereas AirBnBs tend to be more like an actual home: comfortable, with personality, located in the place you are there to visit. You generally get access to a kitchen. A hotel is more convenient if you're just crashing somewhere for a night or two, but if you are trying to visit a place, and enjoy the time you spend living there, an AirBnB is better.
If you have 3-4 kids, many hotels will require that you rent a second room. That usually makes the AirBNB cheaper.