Why not, if IoT devices meet the industrial standards as PLCs for industrial control applications. When they are used in industrial control applications then the name of IoT device would become PLC automatically.
Simple answer: NO! They might be replaced in some cases, but due to their relative ease of use and excellent reliability, PLCs will remain in the control loop for a long time to come. Now, they might be linked to IoT devices for information exchange, but they will still be the primary calculating unit.
Related to that (I have an advanced degree in Process Control), the advent of various Advanced Process Control methods provided HUGE benefits and opportunities to particular niche applications. Where they were needed, they had no alternative. BUT, probably 90% of ALL continuing process control in industry continues to be well-served by the PID controller - and many of those operate as required with only P or PI control as well.
New stuff is great, but in industry we don't usually replace something until a replacement is PROVEN to be not only cheaper, but better and more reliable than the previous devices.
One point of view is that yes, it may happen ultimately because IoT/IIoT devices are small, inexpensive and easy to deploy, have better computing capabilities at a cost inexpensive solution and can deploy secure solution Will IoT/IIoT Technology Replace SCADA and PLC Systems?
However a more close to reality thought is that PLCs complement the concept of IIoT. they are interdependent. They have been in function for a very very long time, rugged devices and can work in extended temperature ranges, immunity to electrical noise, and resistance to vibration and impact. Hence it is very likely that they would co-exist with IIOT devices.