The question should be if ICOs are still profitable and not if they are legit. I do not see any difference between ICOs that are in the market nowadays and ICOs that were here 1-2 years ago. The problem is that investors realize that ICOs are extremely risky and without the bull market the probability that they will earn is extremely low. 
Can we call it as a gambling? An investment place but like gambling. We will lose all our money when we invest in an ICO, it is different when we invest in some altcoin that already listed in some exchange. Because we can expect or we can trade the coin when the coin will decrease, most possibilities losing all money on this way have a small chance. But with an ICO, where we just spend money without we know that the project will be listed on some exchange or not. If we fail to predict this way correctly then we will lose all our money, it is more like gambling.