After my shock and anger subside, I can think more clearly now. I see many have mentioned using this to perform MITM on the IoT devices.

On the other hand, can we not utilize that to also protect the IoT devices? Can we not create a MITM proxy on our own network that proxies all of our IoT devices's traffic and then forwards them to the trusted HTTPS, MQTTS, ... endpoints upstream? Since the proxy already revokes these bad certificates, the upstream traffic should be protected. We should be able to revoke any other bad certs in the the future as well.