Nest and Honeywell's connected thermostats are a good idea, but they cost too much (~$250 + tax). They also don't do much and are closed, proprietary systems, meaning they can't work with your other manufacturer's items and you can't change them. I have my fifth prototype of a touchscreen, wifi-connected, linux based, python programmed home automation platform.
Revenue will be generated by smart engineering and management practices leading to a profitable initial product which, if I'm successful enough, will become the defacto standard for low cost, EASY, open, home automation that anyone (even my technophobic dad) can buy and deploy on their own.
Open sourcing will remove many legal concerns. It will also keep engineering and QA costs down as the open source community is welcome to contribute.
What I need more than money is a talented electronics engineer to help with the (PCB mfr process)