Yes, the market is shifting towards affordable smart devices, but there is still a lot of fracturing that makes development hard enough even for premium audiences.

I think that finding this classes problems, a good solution, and mapping them to software is the real problem -- the device proliferation and connectivity is just a compound issue.

There are others that believe the inverse though, devices and connectivity proliferation are the primary problem and solving it will allow for the next generation of startups to address this classes real-life issues without the hardware overhead.