Let's see how well this translates into refunds to customers. My girlfriend and her friends have a $1400 stay that thus far the host isn't interested in discussing any form of refund or cancellation (in a state with a state-wide stay-at-home order).
Also -- And this speaks more to Airbnb's shoddy enforcement more than anything else (and maybe they've changed it, it's been almost two years), but a relative, after being banned by Airbnb for winning a CC dispute due to this exact same problem, was simply able to sign up immediately after with a new account (and credit card number); the ID verification didn't even present any problems.
I think this is a great decision on Airbnb’s part. It will make hosts trust that Airbnb is a stable source of income even in disastrous times. And Airbnb can keep the most of their hosts (at least for the time being).
Added benefit is it will actually help some people out.