I think we're on the brink.
On one hand, home automation tech is at its absolute best when it blankets your home. When you've got lights in all your rooms, motion sensors, a thermostat, etc., that's when you see the real power of *automation*. But that can be pricey.
On the other hand, even a single, WiFi-connected lightbulb or plug is — at the very least — a nifty parlor trick. That "a-ha" moment when a person is delighted by their light turning on as they enter their home (thanks to a geofence or some other automation) is powerful. It's exciting. And when folks share that excitement with others, they start to add the tech to their home, too.
And when you consider the cost difference between a single plug or light versus video game consoles, TVs, and other now-common home-based technology, I think we'll see normalization happen quickly. It doesn't cost very much money to make a "dumb" fan smart.
There are also more and more builders who are adding home automation tech as a default in new builds. College towns are starting to see rental properties (homes, apartment complexes, etc.) with smart home amenities. It adds value and it adds the "cool" factor.
All-in-all, given that it's catching on at the consumer level while also catching on at the real estate level, I think we'll see normalization in the next few years.