We need to have services like Jumio or Onfido in this field. Where the investors will verify their identity and get an ID number. Now they can pass on that ID number to the ICO companies they are investing. The ICOs will be assured about the identity of that person but will never have the documents in their hand. That is one solution that I can see to overcome the KYC risk as of now.
I agree, but decentralized. Get fiat/crypto conversion exchanges (that you already give your KYC anyway) to work together on a common KYC standard that they all benefit from and contribute to.
This is how I think it should be done.