I so agree -- its a joke and their algorithm can not compare one home to another regarding amenities, decor / design or comfort.
I constantly get emails to reduce my prices because someone booked in my town for $7/night less. Why on earth would I lower my price so a stay would cost me money instead of making it. I am not a rooming house, Y or youth hostel. IF people want to under-price themselves, that's their choice I guess, but we should be aiming for better than that.
A guest told me that she booked and left a place that was $5.00 less a night than my place and it was an inflatable bed. I have a beautifully decorated rooms with great mattresses, pillows, linens etc.
A lot of times its newbies that are trying to get bookings so they can make SH. I have worked hard to get my SH status and hosted over 200 people, why on earth would I be asked to lower - why would I make that choice?
Here, hotels and motels start at $160 and go over $300 and they want me to reduce my $65 and $85 dollar gorgeous rooms??