I think there will be more huge investors which will invest into ICOs. In this case prices for ICOs will get even more expensive and make it difficult to make profits for small investors.
I think the market will find a way to let small investors back in even if that trend takes place, referring to microtransactions, crowdfunding, 'kickstarter'.
Not just the market. Just because the SEC doesn't let small investors invest in many things that "sophisticated investors" can, doesn't mean that 1) other regulations don't either (many do) 2) that's how the regulation would work with ICOs.
There can be regulation and not change the important aspects of ICOs.