In today's houses, switches are hard-wired to control specific lights or appliances, which terribly lacks flexibility.

With modern technologies (specially power-line data transfer), all elements in the house (and even more important, in offices) should just communicate with others.

Each switch is given a unique number. When operated, it just sends a message on the power line. Each appliance, each bulb socket... is also given a unique number. It listens messages on the power line for messages intended to it.

Who controls what is determined by a central control unit. If switch with #122 should control appliance #45, each time switch #122 says 'on', the central unit says '#45, on please'. But the switch is not directly linked to the appliance, and can be anywhere in the house.

Every appliance can be controlled by one or many controls, and some controls may concern several appliances. Some appliances could be controlled by the central programming unit, or through the internet, etc...

Plugging an additional switch into a wall outlet to control an appliance in another wall outlet becomes possible.

Changing things is just software. It can be done each time you move your furniture or appliances around, or it may change over time, etc... name it.

All components have a unique identification number, either built-in, or programmable. Before use, they must be "introduced" to the control unit, in a "plug-and-play" style: you buy a new lamp, just plug it where you want. It can't be controlled yet, but the control unit's screen says that a newcomer is here, naming it by the brand and model names. Just tell the control unit that the switch near the door should also control this new lamp. High-end control units could allow you to change the name of the unit ("Mummy's small green lamp"). They could also be connected to your computer (via its power cord, of course).

Old appliances could just be controlled by special outlet adapters.

Some concerns about power line characteristics, fuse values and such niceties should be solved, but the smart components could also help in this... For instance, the control unit could know the maximum acceptable wattage on each power line, and refuse to power on more than is safe. If you plug too many hot things on the same cord, and try to switch everything on at the same time, no blown fuse, no dark house, but your oven just refuses to start unless you switch off something else.

The biggest challenge in all this is standardization.

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