Noise monitors and cameras are certainly helpful in holding guests accountable. Ideally, hosts will do everything in their power beforehand to vet incoming guests. However, someone willing to throw a 200 person party that leads to this will not care about Airbnb's "no party policy" or any additional rules a host puts into place.
Whatever regulations come down from the city are likely to be nothing more than theater. What the news isn't reporting (for the most part) is that the police were at the property earlier in the night and several calls had come in about this party. The police chose to do nothing. They didn't even file a report. Responsible hosts in Pittsburgh have stories of doing everything in their power to stop or prevent parties, but have received no help from police.
This is more of a crime problem and less of a short term rental problem. On the STR side of things, as @Dave Stokley mentioned, Airbnb could do more to vet their guests and empower hosts to do the same. Anyone host who has been doing this for any length of time has been taken advantage of by an Airbnb guest in some way. The best things that hosts can do is scrutinize their guests to the best of their ability. Additionally, hosts should be the best neighbor they can be by making themselves available to the neighbors and the local police with full transparency on how they operate their STRs.
