I would say that ICOs in the early days were great options as you could diversify broadly and hit a home run and cone out on top. Now it is more difficult given the number of them out there and the limited transparency in most. If you add the regulatory concerns then I would say the risk/reward is just not there unless you are involved and saavy in the specific technology or solutions offered. Past ICOs also have first-mover advantage as well which is something we are seeing less of given the number of new projects trying to the same thing now out there.
You articulated the issues well. I was personally involved, but late and stopped after realizing the rabbit was out of the bag.