AirBnb's price suggestions is NOT a result of supply and demand. On the contrary these suggestions are artificial low rates set from a central source, with the aim of grabbing the market, by luring new hosts to rent out accomodation to a price, which is not sustainable.
If AirBnb can get a sufficient share of a local market, they can damage the entire accomodation industri in that area, but as long as the supply of newcommer hosts exists, who want to rent out for any rate, ASirBnb make money.
If a group of accomodation houses went together and agreed common rates, with the purpose of outrang all local non members of the club, it would be an illigal cartel construction, but as an agensy AirBnb can get away with this busines method.
If hosts want to survival, they have to refuse to fall into this collective trap and set rates to a sustainable level, similar to rates displaid on the big OTA sites. It might hurt in the beginning, but it will pay in the long run, especially if hosts start to look for other agensies than AirBnb.