If you start a business and ask the bank for $10m they will throw you out on the street. ICOs should set a much lower and realistic softcap, even $1m or $2m is enough for most of these projects in the ANN thread.
Do you think they really need millions of dollars for a team to develop a program and then market it afterwards?
You are right! if there is a small team of 3 devs then they don't need 1-5 or $25M.
Only large companies with a well-working and sales generating business could ask $20-25M on ICO or token sale. Because such big companies are able to quickly and efficiently utilize a big hard cap.