Kafka offers powerful features like schema design, high availability, data persistence and durability that can be utilized in an IoT architecture. By redesigning a demo to utilize topic design and partitioning, Kafka provides a natural division between devices, achieving similar benefits as MQTT's topic hierarchy structure. Kafka partitions provide consistent ordering of records and parallelism for performance purposes, allowing for topic parallelism and topic replication. Additionally, Kafka Connect enables the use of enterprise-grade connectors like InfluxDB, providing a seamless integration with existing systems. However, Kafka may not be suitable for all IoT solutions due to its requirements for stable networks and lack of key data delivery features.