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Write the advantages and disadvantages of the internet 

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During the gold rush, the folk who bought land at random and dug for gold had a chance of getting rich or losing everything over wasteland. However, the guys who sold the shovels always made money. 

Instead of making yet another consumer facing product, try to create something that will help others build IoT products faster. Or easier yet, help the average non tech savvy person convert existing products into those that fit the IoT concept. To start of with, you could build something for small home automation integrators, and for DIYers who don't know what all to automate.

Build a power controller that can be controlled via zigbee or something scalable that doesn't depend on expensive routers. In addition to control let it also transmit data on ON time and whatever else you can collect.. Give it the form factor of a standard powerplug, a standard bulb holder and a standard switch (for fixed appliances). Get an app for control, and also to run data analytics to figure out usage trends.

So now, you have 
a plug and play automation system that immediately lets you control your home.Once data trends are available, the app can suggest grouping items together (if the Tv being switched on at weekend noons always happens with the AC being turned on at the same time, then the app suggests turning on the ac when you turn on the tv the next weekend)Time and data trends can be overlaid for the app to make suggestions (use of home treadmill is always followed by a hot shower? App suggests turning on the water heater 10minutes before usual treadmill switch off time)
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