What IoT COULD Be
+ a Raspberry PI plus some 250V/16A relay switches; some SPI A/D converters for reading humidity, temperature and the like
+ an ESP8266 chip (3 dollars) plus the actors and sensors above for a total cost of 10 dollars or so
It can be used to monitor temperature and even regulate the temperature by turning on/off an electric heating. Or it can be used to simulate house occupancy during vacation, in order to scare off thieves.
Another application would be a drastic reduction in the wiring needed for a complex light system. Have one power bus plus an ESP8266 with each lamp. Switch on/off lights by Wifi from a smartphone app.
And yeah, no creepy microphones or cameras in the bathroom required to make sense.