Taking the Brilliant with the Dumb
Sounds like a great start for a comedy routine, but don't rush to give up the writing job just yet. :)
The assertion, "limitless dumb possibilities," is undoubtedly true; althought, it ignores all the brilliant possiblities as well. One could easily have said the same about the iPhone and App store a few years ago. In fact by the reasoning in this article, we should all abandon planes, trains and automobiles, as we can walk or swim anywhere they go.
In the end the Internet of Things is about low-cost sensors showing up for all kinds of physical phenomena and coming down in price. Add to that the need to communicate from these sensors, and the global communications infrastructure that already exists, and you end up with the dominant design tilting to sensors on the internet. It's pretty basic economics. Just because we don't see the brilliant applications right off, doesn't mean they won't exist. And in fact it will be an emergent development, not unlike the PC and Smart Phones, which have evolved countless numbers of useful peripherals and applications that could not have been foreseen at their inception.
The sensors will exist, be put on the internet, and be justified by an initial use case, but available for an infinitude of other applications (some in combination with other sensors). A lot of Darwinian failures, over hype and disillusionment to follow until we figure out where it works, how to live with how they work (e.g., mandating cyber-security where needed) and eliminating where it doesn't work.