Making sets of all their franchises would give them good money.
Which is the only reason they're doing it in the first place.
I don't think they particularly care about pleasing their customers.
If they did, they could certainly make the sets look a lot better.
I don't think they look unappealing, considering they're based off of Transformers, and are supposed to look like Lego, without looking like Lego.
And I wouldn't be so sure that they'll only do their own franchises.
Of course there is money in there, but that's not to stop them from designing their own new things with Kre-o.
Otherwise, Kre-o isn't even a franchise of it's own, it's just a style for making their other toys.
Unless you're expecting them to start releasing Star Wars Kre-o (Which would likely not be possible with Star Wars Lego existing), My Little Pony Kre-o and G.I Joe Kre-o