The Intercontinental title, together with the WCW US and TV titles, lost their prestige in the Attitude Era. Before the Attitude Era, long world title reigns were the norm. So the Intercontinental title was comparable to the Smackdown title today--not the top prize, but an achievement in itself, something a wrestler would be proud of, a career highlight.
With the Attitude Era, the world title was within the reach of all of the top wrestlers in the company. In fact, after the Attitude Era, if you weren't a world champion, you weren't a top wrestler. The Intercontinental title became a stepping-stone to being a world title contender, rather than a prize in itself.
Since the Attitude Era, we've had a lot of Intercontinental champions who either never reach the world title--Goldust, Marc Mero, Road Dogg, Jeff Jarrett, Ken Shamrock, Val Venis, the Godfather, DLo Brown, Rikishi, Billy Gunn, Albert, Lance Storm, Test, William Regal, Shelton Benjamin, Carlito, Christian--or only reach the world title years and years after their first IC title--Benoit, Guerrero, JEff Hardy, Edge, RVD, probably Morrison. There have also been IC champions who won world titles quickly like Randy Orton, or who won the IC title soon after world title reigns--HHH, KAne, Booker, Jericho.
So yes, the IC title has lost its prestige from the days in which it was one of two singles titles in WWF, and titles changed hands only a few times a year.
As for the argument that the IC title has prestige because of all the hall-of-famers who wore the title in the past, I don't think that holds water. Sure, the 1980s IC title was a big deal. But that's not the IC title in 2010. Imagine that baseball had a Minor League Player of the Year award. The list of winners would have every Hall of Famer on it--but it would also have a lot of busts who failed in the major leagues. That's the IC title today--a right of passage for every candidate for main event status, some succeed and some fail.
You can't bring "prestige" back, unless you return to championships only changing hands 2-3 times a year at most. What you could do, is put attention on the IC/US titles by implementing a rule that allowed an IC champ to challenge for the world title if he reached a certain milestone--4 months as IC champ, 20 successful defenses, wins over 10 different challengers, etc. The countdown adds drama, and the promos for the challenger and the champion write themselves--the belt is a highway to the top of the WWE.