There is something deeply concerning about a criminal justice system in which prosecutors are elected politicians but in this particular case I highly doubt that the $40,000 or 1.58 percent matters much for this Schneiderman's decisions. Also, AirBnB is not competing on long term luxury apartment rentals so I don't see the connection.
The AG of New York hasn't been appointed since the before the Revolution. Prior to 1847 he was elected by the legislature since then the people.
Why is an elected prosecutor worse than one appointed by an elected executive? There seems to be great concern about elected officials being corrupted but there aren't a lot of great alternatives.