@Miguel1438 These are unprecedented circumstances- we're in the midst of a pandemic. Many hosts are not allowed to host right now by order of their govts. Many guests are not allowed to travel- they are supposed to be following self-isolation orders. Many borders are closed. Hosts with shared-home listings don't want to host at all right now- it's not safe to have a stranger enter and stay in one's home.
I can assure you that hosts having to cancel reservations, and all the guests who have cancelled due to COVID has been an ENORMOUS penalty for hosts, who depend on that income.
And under normal circumstances, a host who cancels on a guest does receive quite severe penalties- we are charged a $50 fine, the dates of the cancellation are blocked so they can't be rebooked, the host gets "Host cancelled this reservation XX number of days before check-in" pasted on their review page, so guests may be wary of booking with them, and if the host has Superhost status, they lose that status and aren't eligible to gain it back for one year.