Great point about the diminishing returns of development speed when a larger and larger amount of money is thrown at a project as well as the diminishing returns on higher developer counts on most of these projects. Completely agree with your sentiments about new coins being overvalued in the ICO stage (as most people would) for those reasons. Also, since most of these coins in ICO usually have no working demo of their DApp or protocol improvements, unless a project has established people in the field working on it, investors are pretty much betting on ideas without any guarantee or reasonable promise of implementation or completion.