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With Airbnb is swarming into malaysia property market, do you think property with HDA will restrict airbnb business anytime sooner like in oversea. Those condo, service apartment, apartment will not allow Airbnb business anymore? Is it more viable to invest in those commercial title for airbnb business?

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I heard there a condo in KL, which allow airbnb to operate for the homeowner. But the owner must pay an initial deposit of RM 5,000 first before accepting any tenant. In this case, if there are any damages the repair will be taken out from the initial deposit. I personally think this is a good method as it will be on the homeowner responsibility if they were to accept airbnb. small reward with high risk.  

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If too frequent check in and out will interrupt the residences.

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if security systems and the guards are well trained and execute their authority, will have less issues, checking in guests on short term rent, generally, owners will have taken their passport copy, if any issue file a report with police/embassy

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I do not think Airbnb will be disallowed. The relevant authorities should review and update the guidelines to improve the Airbnb business service in Malaysia. Airbnb is popular overseas and Malaysia in my opinion should continue to be open to this alternative accomodation service.