I want to believe that all projects listed for IEO are completely vetted by the exchanges before approval is granted and even though these exchanges have a clause saying that "they are not part of the development of these projects" but its important to note that, they have in a way linked themselves to these project by accepting to partner with them in terms of the IEO.
A lot has been lost to fraudulent ICOs, since only vetted and seemingly good projects will be featured on IEOs, IEO is fit for the modern clime. However, exchanges need to work on the demerits and focus on ensuring that a vast majority of prospective investors take part in the IEO.All IEOs need is regulations and I believe exchanges like binance and Huobi are making new rules, others will follow soon.
Moreover since IEO is more sure than ICO and IEOs are listed automatically, many investors prefare them to ICO. Many ICOs are still struggling for listing even after several months of completing ICO while others don't list at all.
Again with the ban of ICOs in China, Chinese investors and others can partake in IEO since its legal and done in exchanges
You can visit my thread on all you need to know about IEOs for more info
https://bitcointalk.org/index.php?topic=5128008.0