The other big issue is that it doesn't scale, because there's no directionality: the reflected signal will be scattered off the moon and received everywhere on the hemisphere of earth where the moon is above the horizon. So every single device that tried to use this strategy would have to contend for the same chunk of bandwidth.
Amateur radio operators still do it, and with purpose-made codecs and really slow speeds it's not that out of reach (i.e. at least for those you don't need a radio telescope dish), but that's just because it's an interesting challenge.
The upshot is that you can communicate with any station that can also see the moon - somebody on the other side of the planet, 12,000km away. Plus there is the unique experience of hearing your own transmission echo, two seconds after you cease.
This kind of setup is well within reach for a commercial enterprise but will never be practical for IoT owing to the laws of physics. On the other hand, there is SNOTEL, a system that bounces snowpack telemetry off of the ionized trails left by meteors...
You can mitigate this by having many gateway/collectors at high points on buildings/hills, but bouncing signals off the moon seems like an interesting alternative for connectivity in low coverage locations...
Perhaps this is clear to you I'm just trying to think it through out loud.