While I think people looking for a quick buck (who didn't research the investment) in ico's are the issue here, the crackdown was bound to happen. That much money that fast attracts regulators.
Ultimately, this is good news. More integrity is introduced to the game, and right now it looks like Christmas with all that red on the board.
I think so as well. Every week millions of dollars that might have invested in Bitcoin or some other legitimate coin were being siphoned off to less legitimate coins. I would think this would ultimately boost the value of the major coins after the dust settles...
Now that a lot more people know the story of Bitcoin, they are trying to repeat the same results, but this time have a piece of the pie. The problem is, many of these people are still very inexperienced and have little knowledge of the crypto world, and are pumping money into these crap coins.