I believe ICO or IEO will be replaced with STO sooner or later, only because those who participated in ICO/IEO are looking for profits, and that's hard to achieve with utility tokens, especially at the beginning. Market penetration is tough because blockchain is not equal to a crypto token. Lots of solutions proposed by ICOs projects can be done without a secondary token, but they created that just because they need money.
This is true, security tokens provide more protection for investors (and bounty hunters) from scam, but unfortunately they do not protect from the failure of the project due to team errors or unfavorable market conditions. I prefer a good utility token, but this is not so common. Security tokens are good for scaling up an already operating profitable business, perhaps in the future we will see their heyday in this direction.