I'd actually go as far as to say that ICOs are fraudulent by nature. The ones that are not fraudulent by intent just have no idea what they are actually doing.
They know exactly what they are doing. They are raising massive funds in an extremely short period of time with no direct obligation to provide returns to shareholders.
I like to think that some of them at least try to advertise them fairly (as some kind of crypto-kickstarter campaign), but I agree that any company that raises millions in a few days or mere hours without owing anybody anything in return is bound to fail due to a massive lack of incentive to produce.
Yep, it's deliberate. They're the backalley version of a regular stock offering.
They're marketing themselves as "opening investments up to the people" but they're simply a way to get money from investors without any of the very reasonable legal securities and obligations that come with a company going public.