I don't think so. You're describing a WAF for IOT devices. Their WAF is for websites. Websites are accessed using a domain. You point your DNS at CF and that gets them to filter all traffic.
In IoT, attackers use things like Shodan or their own scans to find targets and then target based on target IP, directly. So CF don't have the opportunity to inject themselves in between attacker and victim.
Unless they're cutting deals with ISPs to transparently proxy traffic.
But the whole point here is we're left guessing. The announcement is a drawing of an IoT device with a Cloudflare ring around it. I guess I'm just a bit curious what that ring actually is. Besides a press release.