That's mostly nonsense, a coin will stand on its own merit regardless if it what ico issued or mined. But both methods still have their pros and cons.
I do not agree with the statement that if a coin was released through the ICO, then it is doomed and is not promising. Of course, a significant part of it since the release was already lifeless, because the purpose of ICO was to raise funds, and not the reputation of the coin. However, some of them have existed for a long time and quite successfully, especially if they are actively used in narrow areas - gambling, medicine, banking, security, etc.
So many readers conflate the legal issue with the judgement of whether the project has any merits or is a scam or not.
The merits of an "ICO issued token" is entirely irrelevant to the legal issue. The problem is that securities will be illegal to trade and will be delisted, thus destroying their market price. Regardless of whether the project has any merit.
Please read again more carefully:
Any token which is a security, is illegal to trade on public markets (i.e. including non-accredited investors) which are not registered with the securities regulator in the applicable jurisdiction.
This means that tokens which were issued via ICO are not legal for spending as a cryptocurrency, nor for trading on the unregistered exchanges that exist now.
Eventually numerous major countries will ban the trading of these tokens per the requirements stated above. When that happens, there will be no more mainstream speculation market for these tokens.
Additionally ICO issued tokens which were not registered (with the securities regulators in each jurisdiction where the people who will trade them reside) nor issued only to accredited investors (which is the case for every ICO issued token project thus far), can't even be traded on regulated exchanges nor in private transactions between accredited investors.
Additionally those who are trading and/or promoting ICO issued tokens are potentially incriminating themselves, for future action by authorities at some later time. Remember the national securities agencies of at least the G5 are saving everything you do on the Internet for future analysis. And remember VPNs and Tor are honeypots and do not protect your anonymity.
If that is "pathetic" or "overblown", then do not cry to me later when you suffer major losses, fines, or jail time. I tried to warn you.
So what exactly do you disagree with in the above factual statements?
Are you claiming that most major countries of the world won't end up banning trading of ICO issued tokens? Or are you claiming that it won't crash the price of these tokens because they will still be tradeable in some obscure countries in the world (yet illegal for people from affluent countries to use those illicit exchanges)?
One can claim or argue that securities regulation in many countries of the world will not be harmonized with the common sense regulation in the USA, China, Canada, UK, etc..., and thus that the exchange markets (and legal use of those exchanges by most affluent people in the world) for ICO issued tokens will not be significantly destroyed, but we already have an example where the USA was able to force it's FATCA regulation to be enforced on USA persons in every country of the world. And for securities regulation, we already have several major countries warning of possible regulation of ICO issued tokens coming, including (as the linked blog in the OP states) USA, UK, Canada, Russia, China, Singapore, South Korea, and Hong Kong.
IMO, the G20 is getting organized on harmonizing their enforcements against financial crimes and tax evasion, per their agreement at a prior G20 summit to begin this coordination as of January 2017. Thus it is just a matter of time until all those who in the past were trading and/or promoting ICO issued tokens will
retroactively have their fingertips burned up to their armpits by the authorities via a combination of delisting of tokens crashing their prices irrevocably and also fines, clawbacks, and potential jail time against some individuals.
The public are never going to touch these ICO issued tokens after the authorities start to declare them illegal for trading. Thus their prices will collapse because those tokens have no future.
Those who are netting gains from trading in ICO issued tokens may be feeling happy and smug, but will they regret it later when the clawbacks, fines, and other punishment is greater than the gains they netted. Potentially ruined lives because of illegal activity. IMO, it is not worth it unless you are desperate.