On the contrary, with social media the way it is, David's is getting bad press with anyone who reads reviews, blogs, facebook pages, etc. Retreating to the legal wording of his contract is very bad press and a bad business decision. I know he's already lost a lot of customers (both Owners and Renters, I am both) since these two issues have come to light (and there could be more then those two since it's quite possible other renters are not on this board).
The solution to this problem, as I pointed out, is not something that would have cost him thousands of dollars. In fact, considering what he makes off a contract, he'd still have come close to breaking even on the two deals.
Let's take a look at the cydswipe's example :
Extra cost to upgrade from Studio to 1BR Oct 11-15: $96
Cost of 2 nights not covered by above at All-Star Music Oct 9-11: $280.24
Total Cost $376.24
Now, let's look at what David's is making: 112 points at SSR @ $2.75/point = $308.00
Therefore the total cost to David's would have been $68.24 to turn this from a bad press situation to a good press situation.