Will it scale?
On the topic of carriers and GSM et al, currently we have millions of phone SIMs on the carrier networks. If the billions of devices on the IoT had a SIM you'd need to pick a different addressing scheme than phone numbers (IPv6?) and upgrade the capacity of the base stations to cope with several magnitudes more devices. You can already see them creaking now when standing on a busy train station with 100's of devices trying to log on at once.