I think the point is that the first day this coin is traded on an exchange and it is worth 1.7 billion. 10% of people on the planet could remotely articulate what Bitcoin is, 95% of those people don't know what ethereum is, 95% of people that know what ethereum is have never heard of IOTA, but this coin is worth 1.7 billion.

The amount of applications\ICO\companies that will have to rollout on top of IOT almost immediately to justify this high valuation will probably NOT happen.  

While I do love the technology and the idea that zero fees and no blockchain bloat seem to be a reality with this coin, valuations have to be justified by market momentum. I think IOTA will be like ETH, come out pretty strong, fade for six months, and then have a run when companies start to leverage the platform.

The best thing about the valuation is that it validates how unique the technology is in comparison to ETH. Maybe can be an ETH killer in a few years. Will watch IOTA and Byteball as a result. Full disclosure, I did decide to by Byteball because of the IOTA valuation.