You teach core and theory and you apply it to whatever the current fad is.
He's not really saying that CompSci programmes should be tailored for Internet of Things. What he's saying indirectly but perfectly clearly to those who are aware of the appalling state of networking security in recent years is that university-level tuition needs to buck up and face the music, because the people they have been releasing into the field are totally inept at designing secure systems. The hundreds of thousands of security problems spread right across the whole Internet speak for themselves.
It's a very important message, and hopefully it will resonate with more than a few CompSci departments. IoT is just being used as an excuse for releasing a high-profile message from a respected person about the very unsatisfactory state of developer competence in the area of secure systems.
Regarding your second point about education versus vocational training, you are right about that, but secure software design and cryptogtaphy are not subjects for vocational training, but very strongly in the domain of CompSci. You have to understand the fundamentals, not just know which functions to call.