1. It has a good system to hot load the code onto the pi and immediately start running your new code making deploys more efficient than other compiled languages.
2. Erlang uses processes which are very resilient and a good fit for projects that require constant streams of data & lots of connections which can be relevant in IOT. Basically the jobs restart themselves in a robust fashion.
3. Erlang runs on beam which is a well established VM that has years of development behind it making it a robust core for your project compared to some other operating systems that you may load onto your RPI. I don't think this is the biggest reason, but it is one.
The hot reloading & concurrency model are my favorites & elixir is just fun to build in as well. I'm already using it for web so to bring it into IOT makes it natural for a web/IOT mixed project.