Wearable sensors in Internet of Things (IoT) ecosystems increasingly support applications such as remote health monitoring, elderly care, and smart home automation, all of which rely on robust human activity recognition (HAR). Continual learning systems must balance plasticity (learning new tasks) with stability (retaining prior knowledge), yet AI models often exhibit catastrophic forgetting, where learning new tasks degrades performance on earlier ones. This challenge is especially acute in domain-incremental HAR, where on-device models must adapt to new subjects with distinct movement patterns while maintaining accuracy on prior subjects without transmitting sensitive data to the cloud. We propose a parameter-efficient continual learning framework based on channel-wise gated modulation of frozen pretrained representations. Our key insight is that adaptation should operate through feature selection rather than feature generation: by restricting learned transformations to diagonal scaling of existing features, we preserve the geometry of pretrained representations while enabling subject-specific modulation. We provide a theoretical analysis showing that gating implements a bounded diagonal operator that limits representational drift compared to unconstrained linear transformations. Empirically, freezing the backbone substantially reduces forgetting, and lightweight gates restore lost adaptation capacity, achieving stability and plasticity simultaneously. On PAMAP2 with 8 sequential subjects, our approach reduces forgetting from 39.7% to 16.2% and improves final accuracy from 56.7% to 77.7%, while training less than 2% of parameters. Our method matches or exceeds standard continual learning baselines without replay buffers or task-specific regularization, confirming that structured diagonal operators are effective and efficient under distribution shift.