Great if you know how to use.
I have used Airbnb for about 5 to 6 times from Australia, Malaysia to Hongkong. Reading alot of lousy review from here make me laugh.
First, cancel policy is set by the owner. And it is stated clearly in the page wether they have strict cancel policy anot. I believe some hotels have this policy too.
Lousy experience or lousy stay?. Do you read reviews on the apartment or host before deciding where to stay? There are alot of good host and apartment out there. You need to do research before even making a booking. Factors to consider, location, cleanness, host.
Credit card fraud? Obviously your credit card details have been stolen. It may due to spyware in your computers or public wifi. Just happen your credit card details are being used to purchase in Airbnb. My bet is that the hacker is a host in Airbnb and use it to get your money. Call the bank immediately and change a card!
Airbnb is good on cost saving and experience living like the locals. But having that said, research is needed to have a good experience. Unlink hotels you could just stay in "branded" hotel where not much things could go wrong, of course you pay a premium.