If ICO wasnt been plague by scammers acts ICO will way better than IEO, ICOs are programmed to run on the projects very own website and no any third party involvement at all so any fund raised will go directly to the dev or project team, no loss of funds to scam exchanges,after some successful IEO fund raise on some exchanges they dont bother to send the funds back to the project teams
It used to be developers scamming bounty hunters and investors and now exchanges scamming developers, this is what happened to an unregulated industry, the problem remains because no authorities are going after these scammers, it's more like an HYIP unregulated and free for all.
A good project that wants to be funded should prefer IEO on exchange with a good reputation, ICO now is not a good option to get funded and investors are not looking for ICO based project, especially investors with bad experiences with ICO based projects