While I disagree that the Ward Skins (which are a bonus End-of-Season reward for high Honor Levels) are that bad, I do personally agree that there should be better rewards for high Honor - at least Honor Level 5.
In my opinion, I don't like the way they're going with the Honor Level 5 rewards following the first two seasons - if all we're getting is a Chroma choice between the two Honor-exclusive skins (which the first Chromas, IMO, don't particularly look great? Although that's subjective, but the Twisted-Treeline-esque blue color scheme doesn't really sit well with me) every year, I can see how gaining Honor 5 again wouldn't be particularly worthwhile.
However, there's also a caveat - the two solutions that come to my mind have some notable costs/drawbacks that make them unappealing.
- Loading on more rare Legacy skins. This would somewhat be the easier of the two solutions (as there are quite a few Champions, particularly those earlier ones like Kayle, who have skins that are no longer obtainable for one reason or another), but also the most contentious. Older players who obtained those skins back when they were available would doubtless feel the worth of those skins diminished if they so much as came back to availability, nevermind wide availability like the Honor system.
There would be a balancing act for Riot to both ensure that players can feel rewarded for reaching Honor Level 5 consistently, while also making sure that the players who had the skins originally would have some signifier that they have one of the originals. It's a precarious solution, even if a simple one.
- Creating new Honor-Exclusives each year. This solution would be altogether safer, but would also come with the bite that they're making another skin that is, for all intents and purposes, free. On top of Hextech skins (how many have we gotten in this year alone?) and the Victorious skin, there's always that additional cost to consider that, as it stands, Riot is already pretty damn generous with skins (even if the Gemstone droprate would make it seem otherwise), so more free skins could potentially be seen as overkill.
Although, in my opinion, I feel like one extra free skin each year wouldn't come at too great a cost, so, more than anything, I'd personally like to see Option 2.
But, bear in mind, this is just my opinion and my ideas. Take everything I say here with a grain of salt, and know that I speak only for myself.