Personally, I think we are seeing the effects of automation trickle down.

Market penetration for full home automation systems has traditionally been incredibly low. less than 5% of homes have what we would consider "Home Automation"

What I believe we're seeing a new category emerge in DIY Automation Millenimation maybe? they live on their phones and flipping back and forth between half a dozen apps or so is how they operate.

I firmly believe that this is largely "In addition to" the market that still appreciates real home automation. We will also see a trickle up effect as well. That being as these people age and have more disposable income, they will be able to appreciate combining things down to one app.

In the mean time, I think both markets can coexist just fine.