Ironic that you're going to worry about legal issues while renting an illegal hotel room. Considering AirBnB is all about pushing boundaries and outright disregard for the law, the use of this script seems completely apropos.
Indeed, but it's the illegal rentals which have made AirBnB successful and led to its giant valuation. There were legal rental sites before AirBnB, but none rose to such heights. AirBnB got rich by flaunting the laws on most of their listings.
But you weren't talking about AirBnB, you were talking about the guest. Even if AirBnB became more successful due to also having illegal rentals, it's faulty to assume the guest is in one.
The second meaning is an error, really, and gets flagged with usage notes.
"4. The use of flaunt to mean “to ignore or treat with disdain” ( He flaunts community standards with his behavior) is strongly objected to by many usage guides, which insist that only flout can properly express this meaning. From its earliest appearance in English in the 16th century, flaunt has had the meanings “to display oneself conspicuously, defiantly, or boldly” in public and “to parade or display ostentatiously.” These senses approach those of flout, which dates from about the same period: “to treat with disdain, scorn, or contempt; scoff at; mock.” A sentence like Once secure in his new social position, he was able to flaunt his lower-class origins can thus be ambiguous in current English. Considering the similarity in pronunciation of the two words, it is not surprising that flaunt has assumed the meanings of flout and that this use has appeared in the speech and edited writing of even well-educated, literate persons. Nevertheless, many regard the senses of flaunt and flout as entirely unrelated and concerned speakers and writers still continue to keep them separate."
Different levels of legal violation. Using your logic it would be okay to say, "ironic that your going to worry about legal issues with raping someone when you sped to work."