Even the thermostat products are disappointing. Nest is cool-looking, but it doesn't really do much. The IoT talk was in a big industrial-type space near the shipyard in SF. The room had openable windows, ceiling fans, and openable skylights with big endless-chain mechanisms, plus modern HVAC. None of this was interconnected.
An intelligent HVAC system measures inside and outside temperature, humidity, CO, CO2, and people presence, and controls windows, fans, vents, heating, and cooling. Such systems can be bought from Honeywell, Johnson Controls, and others. Some big buildings have them. They're great for places like hotels, where big rooms go from empty to full and back throughout the day, with no particular pattern. Smart HVAC systems note CO2 level going up, which indicates more people present, and crank up airflow, regardless of temperature. The main problem with such systems is not that they're expensive, but that they're hard to set up and configure, especially since they're typically run by someone at the janitor level. Setup involves running around with airflow meters while someone at the control panel makes changes to the settings.
Now this is an application for machine learning. Something like a Nest, with control of heat, air conditioning, attic, bathroom, and kitchen fans, and some vents to the outside world, could bring modern HVAC technology to the home. It would learn over time such things as how fast the house temperature ramps up when the heat turns on, how much heat the house loses to the outside when the outside is cold, and how far different parts of the house are from the various vents and fans. When you have a party and the house is full, all the necessary adjustments would happen automatically.
Now that's home automation.