It seems like you really have no grasp on the concept of the Internet of Things. You're inventing ridiculous strawmen to slaughter to make your point. Nobody but you is talking about adding IP to showerheads.
The IoT is recognizing the idea that there are millions of IP enabled devices out there today, and the number is growing rapidly. The most visible examples include replacements like Nest or Honeywell thermostats, but other devices are entering homes, too, such as garage door openers, smoke alarms, light bulbs, and even washing machines. The most popular devices include entertainment systems that now can connect to Netflix or Hulu. Some of these will be successful, others won't. But the numbers are ever increasing, and people are buying them.
The market for them is also poised to go up rapidly. Today, they're primarily owned by early adopters, who are always willing to pay a premium. But there is something unusual about the IoT in that, by reporting back to a cloud, they provide valuable data to the manufacturers. More data gives them more value, so they have incentive to increase market penetration, and that means aggressive pricing and increased competition. This will result in more rapid adoption.
So with these diverse things entering the home, the demand to integrate them will increase. Microsoft has a large portion of the home PC market, and is perfectly positioned to provide that integration, even if it doesn't happen on Windows Phones. That is, as long as they do it well, and handle all the random error conditions that a diverse set of computers can generate. If it's not seamless and perfect, they'll fail again.