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The promise of the Physical Web is take the simplicity of web links (that we often take for granted) and apply it to physical objects. What if we really could just walk up to any device and 'tap open' a web page? Not only would it make classic smart devices much easier to use but it would unlock entirely new use cases. There is a today where you attach a BLE device to your dog. If they ever get lost, you hope that the person who finds your dog will have this app installed. Nice idea, horrible execution. If anyone can walk up and virtually open any device, it will merge the physical and digital worlds. Not only will dog collars be reinvented but so will love notes. The promise of the Physical Web isn't in IoT, which is one starting point, but in the ability for anything to have a virtual note card.
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