Hi there- I'm in the uk and been a host for 5 years now.
Regarding towels- I provide a large bath towel and a small hand towel per person staying, but I do not refresh them if the guest or guests are staying less than a week. If more than a week then I will. I don't clean the room during a guests stay, nor do I change bed linen.
I don't think it's what's expected of you per se, it's your listing, your home, your rules and you are what makes it all special- if you want to change towels every day, then do so, but it's not 'expected' of you