Crypto market is controlled by the exchanges, and how they evolve will determine the fate of any thing related to cryptocurrencies. ICOs have robbed people off their wealth, they have damaged the repo of a system which is going to change our financial systems in a decade, basically any thing which people do not trust on is very harmful.
Now coming to IEO, so brands like Binance and now Bittrex too are getting associated with them which adds a layer of trust amongst people, which eventually can bring more money flow and more people in cryptos, the trust building would start again, and definitely IEO will be replacing ICOs, let us see how future unfolds.