Probably overall in the long run a good ting to have happen. I am sure it will tank the ETHprice in the short term or something.
There are a lot of ICOs that don't have any product or team that seem to appear out of no where, and they just have a working website and don't come out with a product. They make millions of USDworth of BTC or ETH and don't put out a product.
Protections are needed for sure.
I'm pretty confident that the PBOC is just buying time to develop proper regulations. In their eyes, something needed to be done about the rampant unregistered security offerings. I'd have preferred they took a more hands-off approach in the meantime, like the SEC did, but c'est la vie.
ETH is actually recovering nicely, along with BTC and other major coins. The fact is that this, fundamentally, has no bearing on actual cryptocurrencies like BTC. And even though Ethereum itself was launched via ICO (paid in bitcoins), I don't think this was intended to target it.