After reading and commenting on a few posts I've come to a conclusion that I really just don't like the new Iconic's System.
I personally think that this is the EASY BUTTON for Turbine. They get a selling point for their expansion and we get to toy around with something that we wont take seriously until they integrate them with the current system. What I mean by integrating it, is that they have intentionally made it so that it doesn't work with the current TR system (which is a huge part of DDO), and that they have combined new races in such a way that they are limited.
What I would suggest is that it be completely integrated and more thought out. Turbine will make more money and we get a better product. What I would suggest is that :
1) Iconic now becomes when you reach 4000 Faction (or whatever reasonably difficult number Turbine decides on) players get to automatically bump any newly created toon to level 15. (This could be sold for 4000 TP or earned in game by doing game content which would require players to buy as well)
2) A New Race, Shadar-Kai be introduced with the option to pick whatever Class a player Chooses. (Could be sold separately later in the DDO store)
3) A New Race Sun Elf be introduced with the option to pick whatever Class a player Chooses. (Could be sold later separately in the DDO store)
4) Bladeforged could be a Feat or a separate Enhancement Treeline for Blue Bar Warforged.
5) Purple Dragon Knight could be a Feat Option as well or could be a Enhancement Treeline for Fighters or Humans.
I don't think its too late, and I think these options are less limiting.