I hope the ICO craze will end soon.
I don't think cryptos should be mixed with startups/kickstarters. Cryptos should be trustless, transparent and decentralized, ICOs are none of those things so using a blockchain platform doesn't really offer any benefits to them, in fact just giving a bad name to cryptos.
But a lot of crypto-newbies gamble with them thinking they know what they're doing and that crypto is all about pumping and dumping random "projects". These people ignore, or not even aware what crypto stands for and just giving a bad name to it. And they will eventually get burned and hate cryptos altogether. Profits aren't made from nothing, it comes from other people's losses.
You made some very valid points here,the proliferation of ICOs may not be healthy for the cryptosphere.A lot of them are scams and will give cryptocurrencies a bad name in the end.ICOs must offer real value to the world's problem and like you said,"profits arnt made from nothing,they come from other people's losses.