The marketing works for you. This is the precise reason, they name it like this.

The IoT means it is for people who can't afford having the OS vendor make the OS do things against their will. Which should be everyone, but sadly isn't.

Wrong. I've been gaming on it with no problems.

Whilst true, the IoT naming is a bit misleading. It's not just designed for IoT devices/purposes. It can run pretty well as a normal operating system, not much is different. (Think Payment Systems, Library Computers, etc).

I think Microsoft just wanted to be in on the "Internet of Things" hype train. The Windows IoT Core is the cut back version of Windows designed explicitly for headless, IoT stuff.