From perspective of a dev I can say clearly
yes, the idea of an ICO is still great.
With an ICO an innovative team can take an idea, present it to the community and see if their idea is worth pursuing.
It is still an amazing way to attract crypto-enthusiasts to turn a great idea and vision that is blockchain based into reality and reward investors for their courage.
In my view it keeps the crypto development alive in times where traditional financing is not yet ready to fund these projects.
I have done it for previous startups very successfully, but even with a great track record of raising traditional bank loans and venture capital based on solid business plans and a convincing product, I doubt that traditional financing is available anytime soon for an altcoin project that uses blockchain as a key element of a business model.
Mostly because the traditional banks struggle assess the risk of such an endeavour, one of the most important inputs to their lending activities.
I bet most loan managers in traditional banks do not understand what blockchain means, so how can they assess the risk ?
The problem is that too many ICOs are on the market, making it very difficult to spot the good ones with unique ideas and a solid business model that really utilises blockchain. This is not only a problem for the potential crypto buyer and investor, it also makes it harder for the ICOs to compete and get attention.
I strongly believe the market will clear up and in the long run only good ICOs will survive. The barrier is getting higher for fake garage type ICOs already. Getting listed on the major ICO listing pages is around 1 to 5 BTC already, multiply that by the number of sites you need to be listed to get attention and the upfront investment is quite high for a scammer. Unfortunately it also impacts the small ICO team with great ideas but limited budget.
Anyways, ICOs will stay and are a great concept both for investors and developers - time will help straighten out the market.
Till then, good luck with your investments