Thanks for writing this out. IEO is not in anyway perfect but it is far better than ICO with what I have experienced with both. No exchange will hold IEO for scam project on their platform and the possibility of immediate liquidity is also a big advantage.
the fact is that new projects are now starting to conduct IEO on new exchanges that have no reputation. and I think there may be some collusion
It will still not create much problem, this one can easily be controlled unlike ICO that has no control, some of the control would be for people to just ignore exchanges that have no reputation, by the time people dont pay attention to them, they will have no choice than to back out of the IEO, as many project developers will also not risk wasting listing money as they are not sure of the volume they will get.
The only way I see us having issue is when big exchanges that we rely on begin to produce shitty projects or scam projects which I believe may be kind of impossible as they will do everything to protect their reputation and the base of users they have already gathered.