Your conclusions about the thought experiment aren't valid. On the outer surface, the force of gravity would be exactly equal to all the mass of the iron sphere as if concentrated to a point in the center of the sphere but felt at that distance. The force of gravity on the inner surface of the sphere would be zero. This remarkable result was proved by Newton in that ANY hollow sphere will have zero gravity everywhere within the sphere. This tremendous range of variation would be reached, across the boundary from the surface to the inner surface.
The outer walls, experiencing an inward compression force due to gravity, will compress inwardly unless oppossed by a force sufficient to hold them in place. When the force is greater than the structural strength of the material, the inner hollow space will be collapsed. Solid rock is known to self-compress into spherical bodies at about half the mass of our moon.