Yeah. LetsEncrypt usually verifies whether the client asking for a certificate owns the domain by sending a HTTP-based challenge. Gatekeeper could pass it by intercepting traffic on port 80. But any LAN device could also pass it by asking for port 80 to be temporarily forwarded. This means that LetsEncrypt TLS certificates are not worth much in LAN environment. Malicious IoT device could convince other LAN hosts that it owns the router IP be sending spoofed ARP announcements. Whenever any LAN device would try to visit Gatekeeper web UI, it would actually visit a fake web UI hosted by the malicious IoT device. The IoT device could then sniff the administrator password and perform privileged actions in the real web UI.
Oh, yeah that would make sense. I think that would solve the whole security aspect :)