In reply to Shaun Kirby.

Sensor fusion is definitely a thing. Take air purifier for example, I know there are appliance vendors incorporating all sorts of sensor onto their designs like odour, light opacity, temperature, humidity, even PIR to detect presence of motions. The data collected from the sensors aren't just for the consumer's comfort but also could be collected to pin point environmental conditions at a very local level for big data processing. Very useful!

One point from your post that immediately jumped out at me too,

"Focus on creating new experiences that are most helpful to the target audience —make the experiences delightful and valuable first, and rich consumer insight will follow."

This is OH SO important and unfortunately I do find it often not being treated at a higher priority. If you want those sensors continue to output data you need the users to continue to use it.

Finally a comment on Rich's post regarding local data processing on the sensor data. My experience is at the moment most sensor signals are processed on the device by the CPU/MCU and only simple data is being outputted onto the network through wireless. The biggest reason is the power consumption on the embedded wireless module is still too high to send out frequent large size data especially for consumer wearables. You don't want to have to charge your smart watch every day... battery technology is still not up to pace unfortunately.